Hyperliquid says ex-employee responsible for HYPE token shorting
Hyperliquid identified a former employee, dismissed in early 2024, as responsible for recent insider shorting of the HYPE token.Summary
Decentralized perpetuals exchange Hyperliquid confirmed that the wallet flagged by its community for insider shorting of the HYPE token belongs to an ex-employee who was terminated in the first quarter of 2024. Co-founder Iliensinc stated on Discord that this individual is no longer associated with Hyperliquid Labs and their actions do not reflect the team's standards. Hyperliquid maintains strict ethical standards and a trading policy prohibiting employees and contractors from derivatives trading involving HYPE, including shorting, and strictly forbids trading based on material non-public information. The controversy arose after a community member claimed the address belonged to a team wallet that sold about 4,000 HYPE tokens in November. Despite recent volatility, Hyperliquid has dominated the perp DEX market, handling $653 billion in Q2 2025 volume, and Arthur Hayes recently called it the "best story" of the current cycle.
(Source：Cointelegraph)