Overview
- Arthur Hayes sold his entire HYPE and NEAR holdings on Thursday, June 4, offloading 247,334 HYPE for roughly $18 million and triggering an immediate price drop from record highs.
- The liquidation forced rapid profit‑taking and leveraged unwindings that pushed HYPE from about $75 into the mid‑to‑low $60s and hit NEAR even harder.
- On‑chain and market data show crowded perp leverage and dense liquidation clusters between $64 and $60, with technical indicators pointing to further risk if support at $55–$50 fails.
- Structural demand remains: Hyperliquid routes roughly 97–99% of exchange and perp fees into buybacks that have repurchased more than $1.16 billion of HYPE, and new U.S. spot and staking ETFs have drawn institutional inflows.
- Other large traders were forced to reposition — including an on‑chain account that closed a costly short and flipped long — and Hayes has promised a fuller explanation in an essay titled “Reality Test” due next Tuesday.