Hyperliquid Says Ex-employee Responsible For Hype Token Shorting

Hyperliquid said that the wallet flagged by its community for insider HYPE shorting belongs to a former employee dismissed in early 2024.

Decentralized perpetuals exchange Hyperliquid has addressed community concerns about a wallet that was believed to be linked to the internal team selling large amounts of HYPE (HYPE).

Co-founder Iliensinc said on Hyperliquid’s Discord channel Monday that the wallet flagged by the community for shorting HYPE belongs to an ex-employee who was terminated in 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, referring to the address 0x7ae4…1028.

The clarification followed weeks after community member cobe.hype claimed the address belonged to “one of the Hyperliquid team wallets” that sold about 4,000 HYPE tokens ($134,000) in a single day in November.

In the Discord post, Iliensinc said that Hyperliquid Labs maintains a strict trading policy designed to ensure that its team operates with a “level of accountability that sets a benchmark for the industry.”

“All individuals associated with Hyperliquid Labs, including employees and contractors, are bound by strict ethical standards regarding the HYPE token,” the co-founder wrote.

Hyperliquid specifically prohibits employees and contractors from derivatives trading involving HYPE, which includes shorting or going long on the token, Iliensinc wrote.

The co-founder added that trading based on "material non-public information” is “fundamentally prohibited,” and that the restriction extends to sharing such information with third parties.

Founded in late 2022, Hyperliquid has grown to command a dominant share of the perp DEX market.

Source: CoinTelegraph