Hyperliquid Identifies Ex-Employee Behind HYPE Token Shorting

Overview

• On-chain observers previously flagged a wallet that sold about 4,000 HYPE (roughly $134,000) in a single day in November 2024, prompting insider‑trading questions.
• Co-founder Iliensinc said on Discord that the address belongs to a former employee dismissed in early 2024 and not to any current team member.
• Hyperliquid stated that employees and contractors are prohibited from taking HYPE derivatives positions and from using or sharing material non‑public information.
• The clarification sought to separate historical individual actions from current governance as community scrutiny turned visible wallet activity into reputational risk.
• Operationally, the exchange reported $653 billion in Q2 2025 trading volume—about 73% of perp DEX market share—while HYPE has fallen from a mid‑September peak near $60 to around $25 yet remains roughly 290% above its launch price.