HYPE Token Falls 10% After Arthur Hayes Sells Entire Stake

Hyperliquid's Token HYPE Faces Major Sell-Off

Hyperliquid’s token, HYPE, dropped 10% on Sept. 22, with a $1.7 billion market cap reduction.
Arthur Hayes, BitMEX co-founder, liquidated his entire HYPE position of 96,628 tokens worth $5.1 million, achieving a 19% profit or $823,000.
The sell-off follows Hayes' earlier prediction of a 126-fold price increase over three years.
Hayes cited an upcoming vesting schedule starting Nov. 29, releasing 238 million HYPE tokens over 24 months, as a reason for the sale.
Buyback programs can absorb only 17% of this new supply, potentially causing a monthly supply overhang of $410 million.
Another large holder, possibly Techno Revenant, withdrew 2.39 million HYPE ($122 million), adding to selling pressure.
Despite volatility, HYPE has gained 1,400% since its November 2024 launch, currently trading at $48.50 with a $16.21 billion market cap.
Hayes maintains a long-term bullish outlook, citing potential stablecoin growth and Hyperliquid’s future annualized fees of $255 billion.