Hyperliquid HYPE Token Shorting Explained by Former Employee.
Decentralized perpetual exchange Hyperliquid has addressed community concerns as the wallet is believed to be linked to an insider group selling large amounts of HYPE.
Co-founder Ilyensink said Monday on HyperLiquid's Discord channel that the community-recommended wallet to short HYPE is a former employee that was discontinued in the first quarter of 2024.
“This individual is no longer affiliated with HyperLiquid Labs, and their actions do not reflect our team's standards or values,” Ilinsink wrote, referring to the address 0x7ae4…1028.
The clarification follows weeks after community member cobe.hype claimed his address was “one of the HyperLiquid team wallets” for selling about 4,000 HYPE tokens ($134,000) in one day in November.
Employees and contractors are bound by “strict ethical standards.”
In a Discord post, Eliasink said HyperLiquid Labs maintains a strict business policy designed to ensure the team operates “with a level of accountability that sets the standard for the industry.”
“All individuals associated with Hyperliquid Labs, including employees and contractors, are held to strict ethical standards regarding the HYPE token,” the co-founder wrote.
HyperLiquid specifically bans derivatives involving employees and contractors HYPE, which includes going short or going long on tokens, Ilinsink wrote.
The co-founder added that marketing based on “non-public material” is “fundamentally prohibited” and that the ban extends to sharing such information with third parties.
HYPE This cycle was dubbed “the best story” by Arthur Hayes, even though it's down 24% this year.
In the year By the end of 2022, established HyperLiquid has grown to command a major share of the perp DEX market.
The platform is expected to handle at least $653 billion in transaction volume by Q2, 2025, representing 73 percent of the total DEX market, according to CoinGecko.
Arthur Hayes, who co-founded BitMEX and helped popularize perpetual contracts in crypto, described HyperLiquid as “the best story” of this cycle so far. HYPE in 2010 He suggested it would start at two or three dollars “before tearing up to $60” in November 2024.
HYPE in 2010 2025 experienced significant volatility, reaching a high of around $60 in mid-September before further sell-offs. At the time of publication, HYPE was trading at $25.40, down 24% from last year, but up nearly 290% since launch, CoinGecko reported.
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