Hyperliquid's HYPE token tumbled from record highs after one of its most prominent backers abruptly sold his entire position. Arthur Hayes, co-founder of BitMEX and chief investment officer of family office Maelstrom, announced on X that he had "dumped my entire HYPE and NEAR position," triggering a pullback from highs near $75 to around $67. Despite the decline, HYPE remains up more than 166% year-to-date, having flipped Dogecoin to enter the top 10 cryptocurrencies by market cap.
Hayes, who just days earlier reiterated a $150 price target for HYPE, said the decision reflected growing macro caution rather than a change in his view of Hyperliquid. He pointed to rising energy prices tied to the Iran conflict, looming high-profile AI IPOs, and his belief that financial markets could peak before September. The swift reversal drew backlash from crypto circles, with DeFiance Capital founder Arthur Cheong calling it "the epitome of a guy that over-trades his position" and prominent trader TraderSZ noting the contradiction with Hayes' recent bullish predictions.
Hyperliquid, an onchain perpetual futures exchange built on its own Layer 1 blockchain, has been one of crypto's biggest winners this year. The platform generated $800 million in protocol revenue in 2025, has three institutional ETFs live simultaneously, and recently gained attention after a major bank documented how it outpaced CME on oil price discovery during a geopolitcal crisis. Weekly trading volumes have surged to $40 billion in perpetuals and $1 billion in spot.
However, 10x Research founder Markus Thielen warned that the 100% monthly gain had become overextended relative to fundamentals. At the recent peak, HYPE traded at roughly 25 times projected fee revenue, the richest valuation in over a year, while protocol revenue remains below its highs and a large token unlock scheduled for June could add selling pressure. Despite calling Hyperliquid "one of the most impressive businesses in crypto," Thielen said the risk-reward has shifted in the short term, though the long-term bull case remains compelling if trading activity recovers and new products attract users.
