Hyperion DeFi, a decentralized application technology company within the Hyperliquid ecosystem, has officially terminated two investment contracts worth $28.7 million following the operational shutdown of the algorithmic stablecoin USDH. The company announced on June 6 that it will reclaim and reallocate approximately 800,000 HYPE tokens — representing 40% of its total holdings — to higher-yield strategies.
What triggered the move? The decision came after Native Markets, one of the two counterparties, ceased USDH operations and returned 300,000 HYPE tokens on June 3. The second partner, the Felix Foundation, is scheduled to unstake 500,000 HYPE on June 22, with full token return expected by June 29. Hyperion DeFi said the termination was a direct response to the changed risk landscape, as USDH’s on-chain mechanisms proved unsustainable.
Market sentiment amplifies the impact. The withdrawal coincides with heightened volatility around HYPE. On June 6, a scheduled token unlock released 237 million HYPE (23.8% of total supply), the largest unlock event in the crypto market that week. In addition, prominent macro investor Arthur Hayes — previously a vocal HYPE advocate — sold his entire HYPE and NEAR positions on June 4, triggering an over 11% price drop and liquidations in leveraged perpetual markets. After an address linked to Hayes was spotted withdrawing 33,979 HYPE (~$2.09 million) from Bybit on June 8, speculation swirled that he had re-entered. Hayes quickly denied the move on X, stating, “I didn’t buy shit,” and on-chain data suggested the withdrawal could be an internal transfer or a mislabeled wallet.
The combination of a major unlock, Hayes’ exit, and now the reallocation of a significant treasury chunk has created a feedback loop of spot selling, leveraged liquidations, and copycat moves. Hyperion DeFi insists the returned tokens will not be sold outright but deployed into alternative yield strategies, yet the market remains cautious ahead of the June 22 unstaking date.
