Hyperliquid Denies Insider Trading Rumors, Claims No Special Tools for Privileged Access

Hyperliquid just slammed the door on swirling rumors—no insider trading, no backdoor tools, no special treatment.

The Denial Heard 'Round Crypto

In a move that cuts through the noise, the protocol issued a firm rebuttal. It bypasses vague corporate speak, directly addressing claims of privileged user access. The statement leaves no room for interpretation: the playing field is level.

Trust, But Verify (The Code)

The response leans on a core DeFi principle—transparency. It pushes the narrative back to the immutable ledger, where every transaction tells its own story. It’s a classic crypto retort: the blockchain doesn’t lie, even if people spin tales.

For an industry where trust is the ultimate currency—and sometimes as volatile as the markets themselves—these denials are part of the daily grind. After all, in high finance and crypto, a firm 'no' is often just the opening bid in a negotiation over reality.

Hyperliquid denies insider HYPE trading

The alleged insider position is valued at only $25,140, shorting 1,000 HYPE. At this size, the insider cannot have any significant effect on the market. The insider still owns around 2.5M HYPE from the spot market, holding despite the recent downturn. The short position is also earning minimal funding fees. 

Despite the single whale’s short position, most HYPE traders are bullish. Open interest for HYPE increased to $1.25B in the past day, with over 64% of positions going long. The only effect on Hyperliquid was the negative press from accusations of potential insider trading from current team members. 

Hyperliquid denies claims of insolvency

Alongside the rumors of an insider whale, Hyperliquid also issued a statement denying recent claims that the platform was insolvent. 

The USDC held on Hyperliquid relies on both Arbitrum and the Hyperchain, while some analysts only accounted for a part of the reserves. As a result, the exchange faced attempts at causing panic. 

“The Hyperliquid blockchain state is fully and verifiably solvent. The author excluded the HyperEVM USDC (a publicly announced and much anticipated integration), which exists in parallel to the Arbitrum bridge,” announced the Hyperliquid team. 

Additionally, Hyperliquid noted it launched some testnet features allowing aggressive trading, but that those features WOULD not be brought to the mainnet or be available for live trading. The team also explained the exchange does not offer special trading privileges and cannot freeze the network on demand. 

The perpetual futures DEX also defended itself against claims of multiple backdoor technologies and claimed all its activity and trades are fully transparent and recorded on the blockchain. 

The market still carries around $4.15B in total value locked, with over $14B in daily trading volumes. The exchange achieved over $895M in fees for 2025, reflecting peak trading activity in both bull markets and downturns.

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