- Former employee linked to large HYPE token sell-off, distancing by company.
- Massive sell-off results in approximately $1.43 million losses.
- Company reiterates former employee’s actions do not reflect its values.
A former Hyperliquid employee’s wallet has liquidated over 70,000 HYPE tokens this December, leading to significant losses and distancing statements from Hyperliquid Labs.
The incident has caused market unease, affecting HYPE’s value and prompting scrutiny into how insider actions impact cryptocurrency stability and trust.
Ex-Employee’s Actions Cause $1.43 Million HYPE Loss
A former employee of Hyperliquid has been identified as the individual behind a substantial sell-off of HYPE tokens. This address, misrepresented in Hyperliquid’s hype and shorting news, formerly linked to a Hyperliquid employee now terminated, has reduced its holdings significantly, reflecting an over 70,000 token decrease.
This activity has caused a decline in HYPE’s value, resulting in a $1.43 million loss attributed to the former employee’s actions. Additionally, the individual holds a small short position on HYPE, which remains at a 43.5% unrealized loss.
Hyperliquid Labs issued a statement clarifying that the ex-employee’s actions are not representative of the team’s values. “This address belongs to a former employee who was terminated in the first quarter of 2024, and is now completely separated from Hyperliquid Labs, stating that their actions do not represent the team’s standards or values.” No regulatory or public statements have been made by high-profile individuals in response to these actions, leaving the market’s overall reaction muted.
Market Dynamics Shift Amid Massive Token Sell-Off
Did you know? The substantial sell-off by a former employee underscores the challenges that crypto firms face in maintaining market confidence when insider-related events occur.
HYPE, with a market cap of $8.32 billion and a market dominance of 0.28%, has experienced a price dip to $24.72, as recorded by CoinMarketCap. The trading volume surged by 60.22% in the past 24 hours, showcasing heightened market activity related to recent events.
Hyperliquid(HYPE), daily chart, screenshot on CoinMarketCap at 22:13 UTC on December 22, 2025. Source: CoinMarketCapInsights from the Coincu research team point to potential regulatory interest in insider actions affecting token valuations. Trading oversight could become a focus to prevent individual actions from skewing market stability, as per long-term historical trends.
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Source: https://coincu.com/news/hyperliquid-employee-hype-sell-off/
