Hyperliquid News Update: With HYPE Stumbling, Major Investor Profits Spark Concerns Over Insider Trading

According to blockchain analytics provider HyperInsight, Hyperliquid's HYPE token has become a focal point as a whale address, suspected of insider trading, has accumulated a substantial long position, now showing over $3.6 million in unrealized profits. This wallet, believed to be acting on privileged information, has also increased its stakes in other tokens such as

and PURR, even though these investments have resulted in notable losses, as detailed by . These developments come as HYPE faces ongoing market uncertainty, struggling to surpass the $50 resistance mark amid negative technical signals, according to .

The whale’s HYPE position, taken with 5x leverage, has doubled in value as of November 3, with trade entries and timing closely matching significant news events, such as Robinhood’s spot trading debut on October 23, as highlighted in

. At the same time, the address holds $8.22 million worth of XPL (leveraged 10x) and $500,000 in PURR, but these trades are currently at unrealized losses of 70% and 7%, respectively, per Lookonchain. The aggressive buying—often against prevailing trends—has led to speculation about the origin of this trader’s information.

FXStreet’s technical review points out that HYPE long holders face significant risk, with over $22 million in positions at stake if the token falls to $46. On the flip side, short positions totaling $14.74 million could be liquidated at $50.49, indicating that buyers may have more capital but are up against a key psychological barrier. On-chain metrics further reveal that Hyperliquid, a leading DeFi platform, is experiencing a drop in weekly fees and revenue as market turbulence discourages risk-taking.

The whale’s approach stands in contrast to the broader market. HYPE’s open interest has climbed 9.11% in the past day to reach $2.17 billion, signaling bullish momentum, but the liquidation data points to fragile positions. The whale’s tactics resemble those of other large traders: For example, Abraxas Capital currently holds the largest XPL short, boasting a 1,000% profit margin, as referenced in the same Lookonchain post. These divergent strategies underscore the high-risk environment of leveraged trading in the crypto sector.

Both regulators and the market are maintaining heightened vigilance following incidents like MEXC’s recent $3.15 million asset freeze involving trader The White Whale, as reported by

. Although Hyperliquid’s whale has not been subject to direct exchange action, its trading patterns echo those seen in previous insider trading scandals, where large positions are established ahead of major public disclosures.