Yeliz Akmaca 
Decentralized exchange Hyperliquid has confirmed that the wallet flagged by the community for shorting HYPE tokens belongs to a former employee who was terminated in early 2024. The statement aims to address concerns over potential insider trading.
Community Reaction and Allegations
Co-founder Iliensinc clarified on Hyperliquid’s Discord channel that the address 0x7ae4…1028 does not reflect the company’s standards or ethical values. Previously, community member cobe.hype claimed the wallet was one of the team accounts responsible for selling approximately 4,000 HYPE tokens ($134,000) in a single day last November.
Strict Trading Policies
Hyperliquid enforces strict trading rules for employees and contractors:
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Derivatives Trading Ban: Team members and contractors cannot open short or long positions on HYPE, nor can they engage in any derivatives trading.
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Zero Tolerance for Insider Trading: Team members must not trade based on non-public, material information and must not share such information with third parties.
Violations may lead to immediate termination and potential legal action, ensuring accountability and adherence to industry standards.
Hyper Foundation Executes Critical Governance Move
Hyper Foundation has taken a key governance step that directly affects the supply side of the Hyperliquid ecosystem. The Foundation proposed to reset the Aid Fund, permanently removing approximately $1 billion worth of HYPE tokens from circulation.
The development drew widespread international crypto media coverage on December 17–18, 2025, attracting investor attention to potential market implications. Analysts note that such a significant permanent reduction in supply could tighten liquidity and create upward price pressure.
Hyperliquid’s community and investors view this action as supporting the long-term health of the ecosystem. The platform once again demonstrates that token supply management is conducted transparently and with accountability.
HYPE Performance and Volatility
HYPE experienced significant volatility in 2025. The token reached an all-time high near $60 in mid-September, followed by subsequent sell-offs. At the time of publication, HYPE trades at $25.40, down roughly 24% over the year but up 290% since its November 2024 launch at $2–3.
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