Decentralized perpetuals exchange Hyperliquid said a wallet flagged by its community for shorting the HYPE token belonged to a former employee who was terminated in the first quarter of 2024. Co-founder Iliensinc said the individual is no longer associated with Hyperliquid Labs and that the activity does not reflect the firm’s standards. The clarification followed claims that the address sold roughly 4,000 HYPE tokens in November.
Hyperliquid said employees and contractors are subject to strict internal trading policies that prohibit derivatives trading involving HYPE, including both long and short positions. The rules also bar trading based on material non-public information or sharing such information with third parties. Iliensinc said the policies are designed to ensure accountability and protect market integrity.
The disclosure comes as Hyperliquid remains a dominant venue in decentralized perpetuals trading. The platform accounted for a large share of global perp DEX volume in 2025, while HYPE has experienced sharp price swings amid broader volatility across crypto markets.
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