Why did the price of HYPE go up?

Hyperliquid (HYPE) increased by 1.86% in the last 24 hours, even as the overall cryptocurrency market dropped by the same percentage. This positive movement was driven by forced liquidations of leveraged positions, significant buying from large traders (whales), and strong price support at a key level.

1. Leverage Liquidations – $96.5 million worth of Hyperliquid positions were liquidated, triggering short sellers to cover their bets.
2. Whale Buying – A trader with a $2.5 million profit opened a 10x leveraged long position worth about $2.98 million.
3. Price Support – The price held steady around $35.50 despite negative market conditions.

Deep Dive

1. Leverage-Driven Short Squeeze (Positive Effect)

What happened: On November 17, a massive $96.5 million liquidation of Hyperliquid positions forced many traders to close their short bets quickly. This happened as Bitcoin fell to its lowest point in seven months, causing a chain reaction of liquidations and increased market volatility.

Why it matters: When traders are forced to close losing positions, it often pushes prices in the opposite direction. In this case, many short sellers had to buy back Hyperliquid, creating upward pressure on the price. The 24-hour trading volume for HYPE jumped 26.35% to $411 million, showing increased activity.

What to watch: Keep an eye on open interest (the total number of active contracts). A steady decline could mean traders are reducing leverage, which might reduce volatility.

2. Whale Long Positions Defy Market Trends (Mixed Impact)

What happened: According to Finbold, a trader who had previously made $2.5 million in profits opened a large 10x leveraged long position on 77,598 HYPE tokens, worth about $2.98 million, at a price of $38.12.

Why it matters: Large, confident bets like this can temporarily support prices. However, because the position is highly leveraged, it carries the risk of forced liquidation if the price falls. Meanwhile, short sellers lost about $1.1 million in liquidations over 24 hours (CoinGlass), indicating bearish bets were being squeezed.

Risk to consider: The funding rate for HYPE remains positive (+0.0068%), meaning longs pay shorts, which can encourage more long positions. But if the price falls below the $35.50 support level, heavy losses could trigger more liquidations.

3. Technical Support Holds Strong (Neutral to Positive)

What happened: Despite Bitcoin dropping 7% over the week, HYPE maintained its price above the important $35.50 support level, which was its low in 2025. The 50-day simple moving average (SMA) at $41.78 acts as resistance, while the Relative Strength Index (RSI) at 44.6 shows the token is not oversold.

Why it matters: Holding above $35.50 suggests there is still demand for HYPE. However, the recent 7.98% drop over seven days reflects general caution in the crypto market. If momentum improves, the next resistance level to watch is around $46.31, based on Fibonacci retracement.

Conclusion

HYPE’s recent gains come from a combination of forced buying by short sellers, large speculative bets by whales, and solid price support. Still, the token is down nearly 34% from its 60-day high, showing ongoing challenges from broader market conditions.

Key question: Will HYPE break above its 50-day SMA at $41.78 to signal a trend reversal, or will Bitcoin’s price falling below $92,000 push it lower?

What could affect the price of HYPE?

Hyperliquid’s price is caught between strong protocol developments and overall market challenges in crypto.

1. Protocol Upgrades (Positive) – The HIP-3 update lets anyone create perpetual markets, encouraging more users.
2. USDC Integration (Mixed) – Using Circle’s native USDC improves liquidity but brings regulatory concerns.
3. Whale Leverage (Negative) – Large open interest ($1.4 billion) raises the risk of big sell-offs.

Deep Dive

1. Protocol Upgrades & Ecosystem Growth (Positive Impact)

Overview: On October 13, 2025, Hyperliquid launched the HIP-3 upgrade, which allows developers to create perpetual markets by staking 500,000 HYPE tokens. This change makes market listings more decentralized. Alongside this, HyperEVM now supports over 10 decentralized finance (DeFi) apps like HyperLend and Felix Protocol, which can increase platform use and fees. The protocol currently earns about $3.7 million daily in fees, with 97% of that used to buy back HYPE tokens (Token Metrics).

What this means: More markets typically lead to more trading volume, which means more fees and more HYPE buybacks. If Hyperliquid keeps its 70% share of decentralized perpetual markets (CoinMarketCap), demand for HYPE could grow thanks to its built-in deflationary features.

2. Stablecoin Liquidity & Regulatory Risks (Mixed Impact)

Overview: Hyperliquid integrated Circle’s native USDC through CCTP v2, making it easier to move stablecoins across blockchains. This has increased the total value locked (TVL) in stablecoins on Hyperliquid to $5.5 billion as of August 2025. However, Paxos’ USDH proposal requires 95% of reserve earnings to be used for HYPE buybacks, which means Hyperliquid depends heavily on centralized partners.

What this means: Better liquidity can attract bigger, institutional traders. But relying on regulated companies like Paxos means Hyperliquid could be affected by changes in U.S. regulations. The platform has been actively engaging with regulators, as shown in recent CFTC comment letters, but this also means higher compliance costs (Coinspeaker).

3. Leverage-Induced Volatility (Negative Impact)

Overview: Hyperliquid currently has $1.4 billion in open interest with leverage options ranging from 3x to 10x. This increases the risk of sharp price drops. For example, on November 17, 2025, a single $96.5 million Bitcoin liquidation on Hyperliquid helped trigger a wider market crash (CryptoPotato).

What this means: High leverage makes HYPE’s price more sensitive to Bitcoin’s ups and downs. With the crypto Fear & Greed Index at 17 (indicating “Extreme Fear”), forced selling could push HYPE down to its $35.50 support level (50-day simple moving average).

Conclusion

Hyperliquid’s price will depend on how well it balances ecosystem growth with market challenges and leverage risks. Key events like wider HIP-3 adoption and USDH governance decisions could help counter negative trends. Still, Bitcoin’s price movement remains a major factor. Keep an eye on the $35.50 support level—if it breaks, HYPE might retest its June 2025 low near $28.

Will Hyperliquid’s fee-driven buybacks be strong enough to overcome the market’s selling pressure?

What are people saying about HYPE?

Hyperliquid (HYPE) is generating a lot of buzz, with opinions swinging between big gains and caution. Here’s what’s trending right now:

1. Breakout potential – Experts expect HYPE to climb above $60 if it stays above $52 support.
2. Arthur Hayes’ bold forecast – A prediction of 126 times growth is stirring debate.
3. Big players’ moves – $2 million in short bets are clashing with large institutional investments.
4. Stablecoin growth – Integration with Paxos could open HYPE to over 400 million PayPal and Venmo users.

Deep Dive

1. @Cryptonary: Bullish breakout confirmed

“HYPE turned bullish after breaking through $49 resistance. Targets: $60 soon, $70–$80 by the end of the year if $52–$53 holds.”
– @Cryptonary (93.5K followers · 42K impressions · 2025-09-13 21:06 UTC)
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What this means: This is a positive sign for HYPE. The price action suggests big investors are stepping in to support key price levels. The Relative Strength Index (RSI) at 68 shows there’s still room for growth before the asset becomes overbought.

2. @CoinRank_io: Hayes’ hyper-optimism

“Arthur Hayes predicts HYPE could grow 126 times if it captures 26% of the $10 trillion stablecoin market by 2028.”
– @CoinRank_io (22.6K followers · 8.1K impressions · 2025-08-25 04:22 UTC)
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What this means: This is a mixed outlook. While the forecast excites many retail investors, some experts are skeptical because it assumes Hyperliquid will surpass Coinbase’s current derivatives trading volume by 50 times—a very ambitious goal.

3. Whale Alert: $2M short against the tide

“Whale 0xf3e1 opened a $2.07 million short position on HYPE at $45.52 with 10x leverage as the price neared its all-time high.”
– CoinGlass data (2025-07-11 08:55 UTC)
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What this means: This is a bearish signal in the short term. Large short positions often come before price drops. However, Hyperliquid’s strong fee-based buybacks—about 97% of fees are used to buy back tokens (LeveX report)—help reduce selling pressure.

4. @rayray1: Stablecoin showdown

“Paxos integration could give over 400 million PayPal users access to HYPE, but competitor $PUMP’s 34% annual buybacks outpace HYPE’s 8.4%.”
– @rayray1 (31.5K followers · 1.2K impressions · 2025-09-12 08:36 UTC)
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What this means: Neutral outlook. While the potential user base growth is huge, competitors with more aggressive token buyback programs might put pressure on HYPE’s market value.

Conclusion

The overall sentiment on Hyperliquid (HYPE) is optimistic but cautious. Technical indicators and daily fee-driven buybacks (around $1.8 million daily according to CoinGlass) support the possibility of price gains. However, large short positions and the risk of investors moving to other altcoins remain concerns. Keep an eye on the $52–$53 support level—if it breaks, prices could fall toward $44. If it holds, HYPE could test its September all-time high of $57. For dedicated holders, every price dip is an opportunity to accumulate (“TWAP fuel”); for skeptics, it’s a risky game of leverage. Either way, monitoring Hyperliquid’s weekly token burn is key, as it reflects real value being created or lost.

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What is the latest news about HYPE?

Hyperliquid is navigating a turbulent crypto market with mixed signals—a record $96 million liquidation and Cboe’s new futures offering. Here’s what you need to know:

1. Record Liquidation on November 17, 2025 – A $96.51 million Hyperliquid (HYPE) position was liquidated during Bitcoin’s price drop.
2. Cboe Introduces Perpetual-Style Futures (November 17, 2025) – The U.S.-regulated exchange launched new futures contracts similar to those popular on Hyperliquid, potentially expanding HYPE’s role in decentralized finance (DeFi).
3. Strong Revenue Despite Market Downturn (November 17, 2025) – Hyperliquid leads in app revenue with $17.1 million weekly, outperforming competitors.

Deep Dive

1. Record Liquidation on November 17, 2025

Overview:
During Bitcoin’s fall to $92,000, a massive $96.51 million Hyperliquid perpetual futures position was liquidated—the largest single liquidation ever on the platform. Overall, the crypto market saw $800 million in liquidations, mainly due to traders using too much leverage rather than big economic events.

What this means:
This event shows Hyperliquid’s importance in high-stakes derivatives trading but also highlights the risks of excessive borrowing. While this is a short-term negative, Hyperliquid’s ability to handle billion-dollar trades confirms its status as a leader in crypto derivatives.
(CoinMarketCap)

2. Cboe Introduces Perpetual-Style Futures (November 17, 2025)

Overview:
Cboe Global Markets launched “continuous futures” contracts for Bitcoin and Ethereum. These contracts work like perpetual futures, a type of derivative popularized by Hyperliquid and other DeFi platforms. The new 10-year contracts aim to attract crypto traders to regulated U.S. markets.

What this means:
This is a neutral development for HYPE. While it introduces more competition, Hyperliquid’s $3 billion in Bitcoin futures open interest (according to CoinGlass) shows it remains dominant. Cboe’s move confirms strong demand for perpetual futures, which could bring more users to decentralized platforms like Hyperliquid.
(Decrypt)

3. Strong Revenue Despite Market Downturn (November 17, 2025)

Overview:
Hyperliquid generated $17.1 million in weekly app revenue, beating competitors like Pump.fun, which made $9.6 million. Even though Solana’s share of ecosystem revenue dropped from 21% to 12%, Hyperliquid remains the top DeFi derivatives platform.

What this means:
This is a positive sign for HYPE. The platform’s strong fee income, with 97% used for token buybacks, supports its economic model. However, the decline in Solana’s revenue share suggests some risk of market shifts. Traders are watching total value locked (TVL), now $3.6 billion bridged, and adoption of HyperEVM technology.
(Blockworks)

Conclusion

Hyperliquid is facing challenges from a market-wide reduction in leverage but continues to lead in DeFi derivatives with strong revenue and deep liquidity. The $96 million liquidation shook confidence temporarily, but Cboe’s new futures and HYPE’s buyback program point to long-term strength. The key question remains: can Hyperliquid’s ecosystem outpace centralized competitors as regulations evolve?

What is expected in the development of HYPE?

Hyperliquid’s roadmap is focused on growing its decentralized derivatives platform, expanding its ecosystem, and forming key partnerships.

1. Permissionless Perpetual Futures via HIP-3 (Ongoing)
2. USDH Stablecoin Integration (Q4 2025)
3. HyperEVM Expansion (2026)
4. SPAC Merger & $1 Billion Fundraise (Late 2025)

In-Depth Look

1. Permissionless Perpetual Futures via HIP-3 (Ongoing)

Overview
On October 13, 2025, Hyperliquid launched the HIP-3 upgrade. This allows anyone to create perpetual futures markets by staking 500,000 HYPE tokens. Projects like @Ventuals and @Felixprotocol are already building on this new system.

What this means
Positive: This could increase trading fees and bring more variety to the market as outside platforms use Hyperliquid’s technology.
Risks: There are concerns about validator centralization since only 16 nodes run the network, and some market listings might be low quality.

2. USDH Stablecoin Integration (Q4 2025)

Overview
Paxos and Frax Finance plan to launch USDH, a stablecoin designed to meet regulatory standards. Most of the earnings from USDH reserves (95%) will be used to buy back HYPE tokens.

What this means
Positive: This improves how capital is used and creates a mechanism that reduces the total supply of HYPE over time, potentially increasing its value.
Risks: Regulatory challenges around stablecoins could slow down this integration.

3. HyperEVM Expansion (2026)

Overview
Hyperliquid plans to connect HyperEVM with popular decentralized finance (DeFi) protocols like Gelato and Stargate, and support new uses for NFTs. They are also developing CoreWriter, a tool to enable smooth communication within the HyperCore-EVM environment.

What this means
Positive: This will improve interoperability across different blockchains and attract more developers.
Risks: The small size of Hyperliquid’s team and competition from Ethereum Layer 2 solutions could make execution difficult.

4. SPAC Merger & $1 Billion Fundraise (Late 2025)

Overview
Hyperliquid Strategies is working to complete a merger with Nasdaq-listed Sonnet BioTherapeutics and SPAC Rorschach I LLC. This deal aims to raise $1 billion to buy back HYPE tokens and support ecosystem growth.

What this means
Positive: Institutional support could stabilize HYPE’s price and fund large-scale token repurchases.
Risks: Market volatility remains a concern, with HYPE’s price down 35% over the past 60 days.

Conclusion

Hyperliquid is focusing on decentralization through HIP-3, integrating a regulated stablecoin, and securing institutional partnerships to strengthen its position in perpetual futures trading. While these upgrades and buybacks may boost demand, regulatory hurdles and a crowded derivatives market present challenges. The big question is whether Hyperliquid’s permissionless approach can outperform centralized competitors like Binance in 2026.

What updates are there in the HYPE code base?

Hyperliquid’s technology is advancing quickly, with important updates that improve decentralization, ecosystem growth, and user experience.

1. Permissionless Perps via HIP-3 (October 13, 2025) – Developers can now create perpetual markets by staking HYPE tokens.
2. HyperEVM Integration (Q4 2025) – Added support for smart contracts and decentralized governance.
3. HyperSwap UX Overhaul (September 7, 2025) – Made cross-chain swaps and liquidity management easier and faster.

Deep Dive

1. Permissionless Perps via HIP-3 (October 13, 2025)

Overview: HIP-3 lets anyone launch perpetual futures markets on HyperCore by staking 500,000 HYPE tokens. This removes centralized control over market creation. To ensure safety, deployers must meet on-chain rules, and there are protections like penalties for bad actors and limits on open interest. After the announcement, HYPE’s price jumped 12.33% (Source).

What this means: This is positive for HYPE because it encourages more developers to build on Hyperliquid, growing the ecosystem. More staking reduces the number of tokens available on the market, while new markets increase trading activity and fees.

2. HyperEVM Integration (Q4 2025)

Overview: Hyperliquid’s blockchain now supports Ethereum-compatible smart contracts and decentralized governance. This allows developers to easily create decentralized apps (dApps), lending platforms like HyperLend, and yield farming protocols. Over 180 teams are reportedly building on HyperEVM (Source).

What this means: This update is somewhat positive for HYPE. It increases the token’s use as the fuel (gas) for transactions on HyperEVM. However, the real impact depends on how many developers move their projects here. In the long run, it helps position Hyperliquid as a hub for decentralized finance (DeFi) across multiple blockchains.

3. HyperSwap UX Overhaul (September 7, 2025)

Overview: HyperSwap’s user interface was redesigned to make cross-chain swaps quicker and liquidity management simpler. Early tests showed about a 15% reduction in slippage (the difference between expected and actual trade prices). New features include one-click portfolio rebalancing and real-time fee tracking. This update came after Rabby Wallet integrated Hyperliquid perpetual contracts, making the platform more accessible (Source).

What this means: This is good news for HYPE because a smoother user experience attracts more retail traders, boosting platform usage and fee income. Since 97% of fees go toward buying back HYPE tokens, this supports the token’s value. Better liquidity also helps reduce price swings during large trades.

Conclusion

Hyperliquid’s recent updates focus on decentralization (HIP-3), scalability (HyperEVM), and ease of use (HyperSwap), all aimed at competing with centralized exchanges. These improvements strengthen the platform’s foundation, but it’s important to watch discussions around validator centralization and how staking affects HYPE’s circulating supply.

Could HIP-3’s permissionless approach make Hyperliquid the go-to platform for innovative derivatives?

What caused HYPE vault losses?

Hyperliquid (HYPE) experienced about $4.9 million in losses in its HLP vault due to a coordinated market manipulation on the POPCAT token. This manipulation triggered a chain reaction of forced liquidations, according to a detailed report from Cointelegraph.

1. An attacker split roughly $3 million across 19 wallets, created over $26 million in leveraged long positions on HYPE, and set up then removed a $20 million “buy wall” near $0.21. This caused the price to collapse and forced liquidations (Coingape).

2. This was not a hack or code exploit. The attacker lost their own $3 million, but the HLP vault absorbed the resulting bad debt as it’s designed to do during liquidations (CoinJournal analysis).

3. As a safety measure, Hyperliquid temporarily paused withdrawals on the Arbitrum bridge while managing positions, then resumed normal operations (Yahoo Finance).

Deep Dive

1. How the Manipulation Worked

The attacker used public market tools instead of exploiting any software bugs. They spread funds across many wallets, built large leveraged long positions, and created a fake “buy wall” at about $0.21 to give the illusion of strong demand. When the buy wall was suddenly removed, liquidity disappeared, causing a sharp price drop and triggering mass liquidations. These liquidations led to losses that the backstop vault had to cover (Coingape).

• The combined leveraged position was over $26 million, and the fake buy wall was about $20 million, concentrating risk at a fragile price level (Cointelegraph).
• This is a classic “create then remove liquidity” tactic that exploits high leverage and shallow market depth.

What this means: When liquidity is thin and leverage is high, markets can be manipulated without any hacking. Fake demand can quickly turn into forced selling.

2. Why the HLP Vault Took the Losses

The Hyperliquid Hyperliquidity Provider (HLP) vault is designed to cover losses when users’ liquidations don’t fully repay their debts. When the POPCAT price crashed after the buy wall disappeared, the vault had to take on the losing positions, resulting in about $4.9 million in losses (Cointelegraph).

• There was no code breach. The attacker lost their own $3 million, indicating the goal was to test the system’s limits rather than steal funds (CoinJournal).
• This revealed a vulnerability in market structure: automated backstop vaults can be overwhelmed by sudden, artificial volatility when market depth is low.

What this means: Backstop vaults share losses during extreme market events. Improving liquidity, adding better risk controls, or limiting exposure to illiquid assets could reduce these risks.

3. Response and Risk Management

The Hyperliquid team acted quickly to manage the situation. Withdrawals on the Arbitrum bridge were paused briefly as a precaution, then resumed after internal risk checks. Positions were manually closed to prevent further losses (Yahoo Finance).

• Multiple sources confirm this was a market manipulation event causing vault losses—not a smart contract hack (The Defiant).
• Similar issues have happened before in markets with high leverage and low liquidity. This case highlights the importance of limiting exposure to markets where price manipulation is possible.

What this means: Users of HLP-style products should watch asset liquidity, leverage limits, and backstop rules carefully. Losses can happen even without bugs when market conditions are stressed.

Conclusion

The loss in the HYPE vault was caused by a deliberate liquidity manipulation on POPCAT that triggered a cascade of forced liquidations—not a software exploit. The HLP vault performed as intended by absorbing the shortfall, resulting in roughly $4.9 million in losses. Moving forward, the challenge is balancing the availability of deep perpetual markets for less popular assets with the risk that thin liquidity and high leverage pose to shared backstop funds.