Hyperliquid ex-employee shorting activity sparked community outrage this week. The platform confirmed wallet 0x7ae4c156e542ff63bcb5e34f7808ebc376c41028 belonged to former staff. According to /photo/1">DegenerateNews on X, the individual was terminated in Q1 2024.
The decentralized exchange addressed the Hyperliquid ex-employee shorting concerns through Discord. Co-founder Iliensinc clarified the person no longer represents the team. Their shorting actions don't reflect current company standards or values.
Community Catches Suspicious Wallet Activity
Community member cobe.hype first spotted the Hyperliquid ex-employee shorting pattern in November. The wallet sold approximately 4,000 HYPE tokens worth $134,000. Traders immediately suspected insider involvement following the token airdrop.
The Hyperliquid ex-employee shorting case intensified as HYPE dropped from $60 highs. Market participants demanded transparency about team wallet movements. Speculation grew that current insiders might be dumping tokens.
Zero Tolerance Trading Rules Unveiled
Hyperliquid Labs prohibits all team members from derivatives trading entirely. The platform bans shorting and longing HYPE tokens completely. According to steven.hl on X, no current personnel engage in derivatives.
Trading based on material non-public information is strictly forbidden. The Hyperliquid ex-employee shorting incident violated these core policies. Violations trigger immediate termination and potential legal action.
Any breach of standards results in swift dismissal. The team emphasized integrity remains absolutely non-negotiable. Hyperliquid maintains accountability standards that benchmark the industry.
Platform Dominance Continues Growing
Founded in late 2022, Hyperliquid commands 73% perp DEX market share. The platform handled $653 billion trading volume in Q2 2025. BitMEX co-founder Arthur Hayes praised it as the cycle's best story.
Hyperliquid Daily posted on X about strong fundamentals generating substantial revenue. Most funds flow into the Assistance Fund for buybacks. The protocol burns HYPE tokens regularly through this mechanism.
The platform processed over $3.4 trillion in total trading volume. A lean team of approximately 11 employees runs operations. Hyperliquid raised zero venture capital and conducted a 31% genesis airdrop.
