Hyperliquid Token Falls to About $80 After Weeklong Slide

Large OTC transfers, forced long liquidations and surging trading volume have pressured the price even as the protocol continues fee-funded buybacks and burns.

Overview

HYPE has dropped roughly 13% over the past week to trade near $80–$81, extending losses first seen after an October 6 peak and reflected in heavy activity on October 13 and 14.
Trading volume surged to roughly $918–$931 million during the decline, and on-chain derivatives data show about $11.46 million of HYPE liquidations with long positions making up about 98% of that total.
On October 7–8 Hyperliquid Labs moved 3.75 million HYPE in an over-the-counter transfer to an undisclosed institutional counterparty and the team said those tokens would not be sold on public markets, a move that raised supply concerns among traders.
The Hyperliquid Assistance Fund has bought more than 48 million HYPE, spending about $1.36 billion, and the protocol’s fee policy converts collected fees into HYPE that the fund then burns, reducing circulating supply over time.
Protocol usage remains strong with reported TVL near $7.04 billion and millions in daily fees, a divergence that leaves price action driven more by token supply dynamics and leveraged positioning than by a drop in platform activity.