Shocking Discovery: Former Employee’s Sneaky HYPE Shenanigans Unveiled! 😂💸

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In a tale that could warm the heart of any literary enthusiast, Hyperliquid has confirmed that a hefty shorting escapade involving its beloved HYPE token was the brainchild of a former employee. This individual, dismissed in the tumultuous first quarter of 2024 for what can only be described as insider trading-oh, the irony!-has unwittingly become the protagonist in this unfolding drama.

This week, the decentralized perpetuals exchange-like a vigilant guardian of integrity-released a statement affirming that on-chain analysis had unveiled the wallet behind these dubious activities. The ex-employee’s wallet, now as infamous as a certain ill-fated Tsar, is firmly linked to the shenanigans. Hyperliquid reiterated its unwavering stance against trading misconduct, because what’s a little shorting among friends, right?

The Great HYPE Dump Conspiracy

As the curtain rises on this spectacle, the community buzzes with scrutiny, fueled by the emergence of suspiciously large short positions on the platform. Initially, whispers of nefarious whale traders or internal conspirators filled the air. But fear not! An intrepid on-chain detective revealed that wallets associated with the notorious address 0x7Ae4-identified as belonging to our erstwhile employee-remain steadfastly entrenched in HYPE short positions. A true commitment to the cause!

Further investigations led us down the rabbit hole of blockchain intrigue. Address 0x7Ae4 had its seeds planted on the Arbitrum network by wallet 0xA2c5, which subsequently dabbled in generosity, sending funds over to address 0x5a62 on the Polygon network. This latter address has been buzzing with activity on Polymarket under the rather whimsical moniker “trytings.” Between September and November, it mysteriously received around $66,000 in USDC from Hyperliquid-because who doesn’t love a good financial mystery?

On December 17, just five days shy of the company’s grand public revelation, this same wallet decided to play the game again, depositing about $53,000 USDC back into Hyperliquid. It opened leveraged short positions totaling approximately $223,000, featuring a dazzling $180,000 HYPE short at 10x leverage and a daring $43,000 Bitcoin short at a staggering 40x leverage, all while maintaining a cozy $63,000 in free margin. Truly, a masterclass in risk-taking!

Hyperliquid’s co-founder, Iliensinc-who sounds like a character straight out of a Dostoevsky novel-proclaimed that employees and contractors are strictly forbidden from trading HYPE derivatives, whether long or short. Any such violations are met with immediate termination. Such strict adherence to protocol aims to uphold accountability and foster the ecosystem’s long-term health. Bravo!

Defending Solvency and Transparency Claims

In yet another captivating chapter, Hyperliquid has bravely stood up against what it calls factually incorrect claims in a recent exposé. The protocol boldly reaffirms its full solvency, transparency, and decentralization. Every cent of USDC on HyperCore is meticulously accounted for on-chain; however, the report conveniently overlooked the native HyperEVM USDC balances. Quite the oversight!

Moreover, Hyperliquid has firmly rejected allegations of retroactive volume manipulation, special user privileges, and the elusive “godmode” controls, clarifying that the functions cited are either relegated to the testnet or simply misinterpreted. Hyperliquid assures us that its entire operational state-including orders, trades, fees, and liquidations-can be scrutinized by anyone brave enough to run a node. So much for secrets in the blockchain world!

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2025-12-24 17:42