Decentralized perpetual exchange Hyperliquid has responded to community concerns regarding a wallet implicated in insider trading of the HYPE token. According to co-founder Iliensinc, this wallet is linked to a former employee who was dismissed in early 2024.

“This individual is no longer associated with Hyperliquid Labs, and their actions do not reflect our team’s standards or values,” Iliensinc stated in a post on the Hyperliquid Discord, addressing the concerns surrounding the account flagged by users for shorting HYPE tokens.

Following claims by community member cobe.hype that the flagged address belonged to a Hyperliquid team member who sold approximately 4,000 HYPE tokens (worth around $134,000) in one day back in November, the company clarified its stance.

In the same Discord post, Iliensinc emphasized that Hyperliquid maintains a robust trading policy to ensure accountability within its team.

“All individuals associated with Hyperliquid Labs, including employees and contractors, are bound by strict ethical standards regarding the HYPE token.”

Hyperliquid specifically forbids derivatives trading involving HYPE, including short-selling or any long positions. Iliensinc further declared trading based on material non-public information is strictly prohibited, and sharing such information with external parties is similarly banned.

In a recent industry report from CoinGecko, it was illustrated how Hyperliquid has captured a significant portion of the perpetual decentralized exchange (DEX) market since its inception in late 2022, handling over $653 billion in trading volume in Q2 2025.

Arthur Hayes, co-founder of BitMEX, recently remarked that Hyperliquid represents the best story of this cycle, indicating the volatility surrounding the HYPE token which has fluctuated dramatically, reaching an all-time high of nearly $60 recently despite a 24% drop this year.