Hyperliquid Links Insider Trading to Former Employee Dismissed in 2024

Hyperliquid has identified a former employee as responsible for an insider trading incident involving HYPE tokens. This individual, dismissed over a year ago, does not reflect the firm's standards or values, according to co-founder Iliensinc.

Key Points

Hyperliquid, a decentralized perpetuals exchange, was accused of shorting HYPE tokens, initially thought to be done by whales.
The exchange reported $3.44 billion in open positions, including $1.15 billion in longs and $2.29 billion in shorts.
Co-founder Iliensinc confirmed that the suspicious actions were tied to a dismissed employee, not the firm.
Hyperliquid enforces strict policies prohibiting employees from trading HYPE tokens to ensure accountability.
A community member linked a wallet selling 4,000 HYPE tokens ($134,000) to a Hyperliquid team wallet.

Recent Developments

Despite challenges, Hyperliquid remains a top-performing protocol even during market downturns.
The company plans to make HYPE tokens in its Assistance Fund permanently inaccessible to reduce supply, potentially increasing token value.