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Decentralized perpetuals exchange Hyperliquid addressed community concerns on December 21-22, 2025, confirming that a wallet accused of heavily shorting its native token **$HYPE** belongs to a former employee terminated in **Q1 2024**. The team stated via Discord: “This individual is no longer associated with Hyperliquid Labs, and their actions do not reflect our team’s standards or values.”
The clarification followed on-chain scrutiny of the address (0x7ae4c156e542ff63bcb5e34f7808ebc376c41028), which had sold significant $HYPE holdings and opened short positions. Hyperliquid emphasized strict internal policies, including prohibitions on team members trading $HYPE derivatives and zero tolerance for insider trading, with violations leading to termination and potential legal action.
The ex-employee reportedly received ~170,000 $HYPE as part of compensation, selling portions over time while holding ~90,000 tokens currently. Community discussions highlighted the incident as a reminder of post-employment risks, but praised Hyperliquid’s transparency and proactive stance on market integrity.
$HYPE price showed resilience amid the news, with broader market focus on Hyperliquid’s dominant perp DEX volume and ongoing developments like token buybacks.
