Hyperliquid news

A trader made about $1.28 million in profit on Papertrade, a new perpetuals exchange on Hyperliquid offering up to 1,000x leverage, shortly after its Saturday launch by manipulating ETH prices on Hyperliquid, according to data reviewed by The Block. The wallet repeatedly opened large positions on Papertrade and then bought or sold thousands of ETH on Hyperliquid to move the reference price before closing. At 1,000x leverage, even a 0.1% price move equals the full margin. The trader traded about $231 million in ETH on Hyperliquid, paying roughly $52,000 in fees, and withdrew about $2.48 million against $1.2 million in deposits. Later, the wallet opened 30 ETH shorts at 660x leverage valued at $297 million, but those shorts remained open for over three hours and were liquidated at a $450,000 loss, minting about 17.6 million PAPER tokens. The wallet has a long history on Hyperliquid, logging $14.2 billion in volume and $13.1 million in profit since February 2025. Papertrade responded Sunday by saying the manipulation attempts were 'not an oversight' but were possible due to loose open interest caps set for launch demand, which it is now tightening. It claimed the trader gave back most of the gains through new accounts and that some users reversed manipulated trades in exchange for keeping PAPER, though The Block could not verify these claims. Papertrade also noted its liquidity pool holds $5 million and has paid $25 million to PAPER stakers.

Singapore's central bank, the Monetary Authority of Singapore (MAS), has added Hyperliquid to its Investor Alert List over concerns about its decentralized structure and unregulated status. The platform, operated by Singapore-registered Hyperliquid Labs, is not licensed by MAS and is not regulated in any major jurisdiction, with the regulator particularly flagging its high-leverage perpetual futures offering. MAS distinguishes Hyperliquid's retail-focused perps from institutional products on SGX, emphasizing that oversight and protections, not the product type itself, are key. The move reflects Singapore's cautious approach to decentralized crypto, balancing support for institutional tokenization with curbs on retail speculation, and could signal stricter global scrutiny of similar platforms.

Hyperliquid, a decentralized derivatives protocol, has surpassed $1.4 billion in cumulative revenue, with over $1.26 billion used for open-market buybacks of its native asset, HYPE, according to a report by @WuBlockchain. This reflects strong fee generation and a commitment to supporting HYPE's price through buybacks, which markets view positively for potential price increases. Market pricing for a $100 HYPE by end of 2026 stands at 55.5% YES, indicating growing confidence. Key factors to watch include partnerships and technological advances, while security breaches or regulatory issues could impact sentiment.

Kain Warwick, founder of Synthetix, warned that Hyperliquid's HYPE token offers holders no investor protections, unlike traditional equities. He noted HYPE lacks legal claims on protocol revenue and questioned the exchange's 50% fee split with market builders, which could weaken the buyback strategy supporting the token. HYPE trades between $80 and $98, with 97-99% of trading fees directed to buybacks and burns. HYPE launched in November 2024 with a fixed supply of 1 billion tokens, no VC allocation, and 31% airdropped to early users. Core contributors hold 23.8% vesting monthly until 2028. In early October 2026, 3.75 million HYPE (about $330M) were moved, partly via OTC sales, with some unlock management linked to Singapore's MAS scrutiny. Warwick stressed holders rely on a mechanism, not legal rights, given core contributor unlocks continue.

Hyperliquid Labs has completed the seven-day unstaking of 3.75 million HYPE tokens, worth roughly $330 million, tied to an institutional over-the-counter (OTC) deal. On-chain trackers show the tokens began moving through five wallets on Oct. 7, with 1.25 million HYPE subsequently returned to staking. The buyer and terms of the OTC agreement remain undisclosed. HYPE's price fell 4.32% in 24 hours to $87.07, though data does not confirm the OTC transaction caused the decline. Hyperliquid Strategies CEO David Schamis denied his company was the buyer. The institution receiving the allocation remains unidentified, and future wallet movements may provide more clues.

Hyperliquid Labs has completed the unstaking of 3.75 million HYPE tokens, worth about $330 million, and transferred half of them to five over-the-counter buyers. Each buyer received 375,000 HYPE, with the total representing the team's largest token distribution to date. The remaining half has not yet been moved. Co-founder iliensinc confirmed the transfer is part of an OTC agreement with an undisclosed institutional counterparty, ensuring the tokens will not hit public markets. The unstaked amount is roughly 1.5% of HYPE's circulating supply and far exceeds prior monthly distributions, which ranged from 140,000 to 534,000 HYPE. Market reaction was positive, with HYPE's price rising on the news. While the OTC deal mitigates selling pressure, details on buyer identities and lockup terms remain undisclosed. The actual unstaked amount is below the 9.9 million HYPE suggested in earlier vesting schedules, potentially signaling a lighter supply month for holders.

Hyperliquid Labs has confirmed Singapore as its registered headquarters, where its roughly 11-person team relocated in 2024, while the Monetary Authority of Singapore (MAS) said it is not aware of the platform being regulated in any major jurisdiction. MAS added Hyperliquid to its Investor Alert List on June 26, but the platform noted the listing is not a ban or enforcement action. Hyperliquid acknowledged its unregulated status and expressed willingness to cooperate with regulators. In a separate development, Kraken parent Payward has proposed regulated Hyperliquid-based perpetual markets for eligible U.S. customers, subject to regulatory approval. The proposal would use Bitnomial Exchange for contract administration and clearing, with NinjaTrader Clearing for customer accounts. This follows earlier reporting that U.S. regulatory pathways for such products would require significant time and coordination among agencies.

Hyperliquid Labs has confirmed Singapore as its headquarters, but the Monetary Authority of Singapore (MAS) says it does not regulate the decentralized perpetual futures platform. The regulator added Hyperliquid to its Investor Alert List in June 2026, flagging it as unlicensed, a status the company does not dispute. Hyperliquid describes itself as permissionless infrastructure, with users maintaining self-custody of funds and trades settling on-chain. MAS views such decentralized venues as outside its jurisdiction, and no enforcement action has been announced, with the alert serving as a public warning. Traders on the platform rely on protocol design and transparency rather than licensed exchange protections.

Hyperliquid plans to add options trading to its decentralized exchange, allowing users to hedge spot and perpetual futures on the same order books, according to founder Jeff at the Blockcash Digital Asset Summit. The move builds on its Layer-1 blockchain, HyperCore, which already supports spot and perps. The platform processed about $2.9 trillion in volume in 2025 and holds roughly 59-60% of on-chain derivatives open interest. Market pricing indicates a 76% chance of Hyperliquid reaching $100 by end of 2026, reflecting optimism about the new offering. Observers will watch for rollout timelines and partnerships.

Hyperliquid, a crypto trading platform, has confirmed it is registered in Singapore, but the Monetary Authority of Singapore (MAS) does not consider it within its jurisdiction due to its decentralized design. The team, led by co-founder Jeff Yan, moved to Singapore in 2024 but never applied for an MAS license. On June 26, MAS added Hyperliquid to its crypto warning list, flagging it as a firm the public might wrongly assume is regulated, though this is a warning, not a ban. Hyperliquid responded that it is permissionless infrastructure with users controlling their own funds, a claim criticized by Kyle Samani of Forward Industries. Singapore's MAS has also set a June 30, 2025 deadline for local crypto firms serving only overseas clients to get licensed or stop operations, generally not granting such licenses. Hyperliquid's on-chain settlement and user-held funds are why MAS does not claim the platform. Meanwhile, Hyperliquid's HYPE token trades at $91.64, down 3% in 24 hours, though its market value has climbed despite the MAS alert. In the US, the CFTC is seeking comment on new crypto rules, citing the FTX fraud as a reason to act early.