Hyperliquid Addresses Team Wallet Concerns as HYPE Faces Volatile Year

Decentralized perpetuals exchange Hyperliquid has responded to community speculation surrounding a wallet accused of shorting and selling large amounts of its native token, HYPE. The clarification comes after weeks of discussion within the community, with some users raising concerns about potential internal selling.

On Monday, Hyperliquid co founder Iliensinc stated on the project’s Discord channel that the wallet address flagged by users does not belong to any current team member. According to Iliensinc, the address in question, identified as 0x7ae4…1028, is controlled by a former employee who was terminated during the first quarter of 2024.

“This individual is no longer associated with Hyperliquid Labs, and their actions do not reflect our team’s standards or values,” Iliensinc wrote. The statement follows claims by community member cobe.hype, who alleged that the wallet belonged to a team member and sold roughly 4,000 HYPE tokens worth about $134,000 in a single day in November.

Strict Trading Rules for Employees and Contractors

In the same Discord post, Iliensinc outlined Hyperliquid Labs’ internal policies around token trading. He said the company enforces clear rules to ensure accountability and to prevent conflicts of interest involving the HYPE token.

“All individuals associated with Hyperliquid Labs, including employees and contractors, are bound by strict ethical standards regarding the HYPE token,” Iliensinc noted. He added that staff members cannot engage in derivatives trading involving HYPE, whether taking long or short positions.

The restrictions also extend to the use of non public information. Iliensinc stated that trading based on material non public information is forbidden. Moreover, sharing such information with outside parties is also restricted. The company presented these rules as part of its effort to maintain trust with users as the platform continues to scale.

Market Position Remains Strong Despite HYPE Price Swings

Hyperliquid was founded in late 2022 and has since become a major player in the decentralized perpetuals market. According to CoinGecko, the platform processed at least $653 billion in trading volume during the second quarter of 2025, accounting for roughly 73% of total perp DEX activity.

Arthur Hayes, co founder of BitMEX, recently described Hyperliquid as the “best story” of the current cycle. He pointed to HYPE’s early pricing near $2 to $3 in November 2024 and its subsequent run to nearly $60 as a sign of strong market interest.

HYPE has remained volatile throughout 2025. After reaching an all time high close to $60 in mid September, the token faced multiple pullbacks. At the time of publication, HYPE is trading around $25.40, down about 24% over the past year but still up roughly 290% since launch, based on CoinGecko data.