Helium (HNT) Jumps 167% Over Weekend Amid Short Squeeze

Helium (HNT) rallied as much as 167% over a weekend, reaching an intra‑day high of $0.989. The price move was not the result of fresh buying interest but rather the forced closure of short positions.

Price movement and volume

The token rose from $0.33 to $0.45 overnight, then jumped to $0.70 by 09:00 UTC and peaked at $0.9782 later in the day. Daily trading volume topped $110 million, far above the $45 million levels seen in previous spikes, and total turnover for the day reached $248.26 million.

Short squeeze dynamics

Short sellers who borrowed HNT and sold it to profit from a decline were forced to buy back at higher prices as the rally unfolded. Coinglass data shows roughly $1.5 million of short positions were liquidated on Sunday and $1.6 million over the entire weekend, while long‑side traders lost about $196,650.

Funding rates and open interest

Funding rates on HNT perpetual contracts turned sharply negative, falling past –1.2% in a single payment, meaning short traders were paying long traders to hold their positions. Open interest surged 197.6% to $13.64 million, the highest level in about a year, indicating fresh capital entering the futures market.

Current outlook

After peaking near $0.989, HNT has retreated to around $0.88, and forced buying appears to be waning. Funding remains deeply negative, suggesting the market is still dominated by short positions. With no locked‑up supply and about 37 million HNT remaining to be minted toward the 223 million cap, future price support will depend on ordinary demand rather than leveraged buying.

Is it too late to buy?

Analysts note that a sustainable rally would require funding rates to move toward zero and open interest to flatten, indicating that short‑squeeze pressure has eased. Buying now would be a bet on a potential second squeeze rather than the initial short‑covering rally.