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Hyperliquid Screener · Short Squeeze

Hyperliquid Short Squeeze Screener

A short squeeze shows up as three things at once: price rising, open interest falling, and funding negative. Positions are closing into strength rather than opening, which on a perp venue means shorts are the ones leaving. Ranked hourly across the top-100 HL universe.

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By Keel Research Team · Updated May 12, 2026
How it works

Short Squeeze methodology

The Short Squeeze screen looks for the signature of positions being closed into strength rather than opened into it. X-axis: last-bar return, top quartile — price is rising. Y-axis: change in open interest over the same bar, bottom quartile — positions are net closing while price rises. That pairing is the distinguishing feature: a rally that adds open interest is being bought by new entrants, while a rally that sheds it is being bought by people who were already short and need out. Z-axis: funding percentile, bottom quartile, hidden by default — negative funding means shorts were paying longs to keep the position on, and hiding makes it a real filter rather than a colour, so names that do not clear it drop out of the cohort. One honest limitation: the venue publishes a single open-interest figure, so this screen sees net position change, not the long/short split. A large long taking profit into strength presents exactly the same way. The negative-funding gate is what tilts the reading toward shorts; it does not prove it.

Run the screen

Live Short Squeeze cohort

The screen below is pre-loaded with the Short Squeeze preset. Adjust signals, thresholds, and timeframe inline — your changes update the cohort in real time. Share or backtest the resulting state directly from the toolbar.

Automate it

Trade this screen systematically on Keel

Keel is a Strategy OS for AI-assisted systematic trading on Hyperliquid. Backtest a strategy that uses the Short Squeeze signals as entry filters, optimize parameters across thousands of variants, then deploy live with funding-aware execution and full risk controls.

Free to start — connect a Hyperliquid wallet when you’re ready to go live.

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What you can do
  • Backtest any strategy built from the Short Squeeze signals with realistic fees, slippage, and funding modeled.
  • Optimize across parameter grids — Sharpe, drawdown, hit rate, funding regime.
  • Deploy live to Hyperliquid with stop-loss, position limits, and funding-aware execution.
  • Iterate with AI — describe a thesis, let the strategy compiler turn it into a tradeable pipeline.
FAQ

Short Squeeze questions

What is a short squeeze?

A short squeeze is a price rise driven by shorts closing rather than by new buyers arriving. As price moves against them, short positions accumulate mark-to-market losses and margin pressure, and closing a short means buying — which pushes price further up and pressures the next tier of shorts. It is self-reinforcing while it runs and ends when the shorts are out, because the buying was never a view on the asset in the first place.

How do you spot a squeeze in open interest data?

Read open interest and price over the same bar. Open interest counts positions still open, so a rally with open interest falling means more positions were closed than opened while price rose. On a perpetual venue there are only two sides, so net closing into a rising price points at shorts leaving. That falling-open-interest condition is the Y axis here — bottom quartile of open-interest change — and it is precisely what the New Money screen at /lab/open-interest requires the opposite of.

Why does the screen filter for negative funding?

Funding is the periodic payment between perpetual longs and shorts. Negative funding means shorts are paying longs to hold, so the position carries a running cost on top of whatever it is losing on the mark — the mechanism that turns a bad short into a closed short. Filtering for bottom-quartile funding keeps the cohort to names where shorts had a reason to capitulate, not merely an opportunity. It sits on the hidden Z axis, so it gates cohort membership without taking up a visible axis.

How often does the screen refresh?

Market data refreshes hourly. The screen recomputes percentile rankings, thresholds, and qualifying cohorts on each refresh. Funding rates update on the same hourly cadence as Hyperliquid’s native funding settlement.

How is this different from the Bollinger squeeze screen?

Different meaning of the word. The Bollinger squeeze screener at /lab/squeeze is about volatility: it finds perps whose price range has compressed, with no view on positioning. This screen is about positioning: it finds perps where open interest is falling into a rising price with shorts paying funding. A name can show up on one, both, or neither. Compression ahead of a possible breakout is the Bollinger screen; exits already under way is this one.

Can I backtest a short squeeze strategy on Keel?

Yes. Open the screen, click "Backtest in Keel," and the current state — signals, thresholds, universe, timeframe — passes into a Keel workspace. From there, you can run a full backtest with realistic fees, slippage, and funding modeled, then optimize and deploy live.

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