Decentralized perpetual futures exchange Hyperliquid has confirmed that a wallet accused by the community of shorting $HYPE belongs to a former employee who was fired in the first quarter of 2024.
The wallet, identified as 0x7ae4…1028, began drawing attention in late November and again this month, after users on X tracked on-chain activity tied to $HYPE shortly after the token launched.
Community members suspected the address was linked to an insider, pointing to roughly 170,600 $HYPE in spot holdings at the time and transfers that appeared to move funds toward the HyperEVM. That speculation grew as traders noticed what looked like coordinated selling soon after launch.
Concerns escalated when blockchain trackers claimed the wallet sold about 1,200 $HYPE, followed by additional sales spread out using a time-weighted approach. One widely shared estimate suggested another 3,700 $HYPE had been sold, worth roughly $110,000 at the time.
Those claims fueled a broader debate over whether insiders were behind some of the post-launch selling pressure, especially as traders monitored $HYPE’s spot and perpetual markets for signs of sustained downside pressure.
Hyperliquid addressed the controversy directly in a Discord announcement, aiming to calm speculation and clarify the situation.
According to the team, the wallet in question belongs to a former employee who is no longer affiliated with Hyperliquid, having been terminated in early 2024.
“This individual is no longer associated with Hyperliquid Labs, and their actions do not reflect our team’s standards or values,” the company said.
Hyperliquid also used the statement to reiterate its internal rules around the $HYPE token. The team emphasized that employees are strictly prohibited from trading $HYPE derivatives and that insider trading is not tolerated under any circumstances.
“Integrity is non-negotiable at Hyperliquid Labs,” the statement concluded, adding that violations can result in immediate termination and potential legal action.
