Former employee withdraws 250,000 USDC to short HYPE. What does this reveal?

According to the latest news, a former Hyperliquid employee’s address withdrew 249,999 USDC in the past 24 hours, and still holds 1,483,912 USDC in the account, totaling approximately $1.73 million. This on-chain tracked address, associated with the Hyperliquid team, drew attention for continuously shorting HYPE during the market downturn. The Hyperliquid team subsequently clarified that this address belongs to a former employee who was dismissed in 2024 and has severed ties with the company.

Former Employee’s Fund Movements

Specific data on withdrawal behavior

The address (starting with 0x7ae4) has a noteworthy withdrawal scale. The withdrawal of 249,999 USDC is not a small operation, and the remaining 1,483,912 USDC in the account represents a substantial amount of funds. This indicates that the address has not fully exited Hyperliquid but is engaging in partial fund reallocation.

From the timing, this withdrawal occurred during HYPE’s recent decline. According to relevant information, HYPE has fallen 5.59% in the past 7 days and 11.66% over the past 30 days. The former employee’s withdrawal during this period has sparked market speculation about their intentions.

Market significance of the shorting behavior

More importantly, this address has been continuously shorting during the market downturn. This is not merely a fund withdrawal but an active trading strategy. The former employee chose to short HYPE as it declined, indicating a bet on further downward movement.

Although the individual’s identity has been clarified as unrelated to Hyperliquid, this behavior itself reflects market participants’ views on HYPE’s prospects. Even a former insider, after leaving, opts to short rather than go long, which is a signal in itself.

Current Market Challenges Facing HYPE

Price performance and market sentiment

HYPE’s current price is $24.88, with a market cap of $844 million, ranking 14th. Although there has been a short-term rebound, the longer-term performance remains weak. Based on related analyses, market sentiment for HYPE still remains at a “panic” level.

Analysis of suppression factors

HYPE faces multiple pressures, which explain why, despite institutional interest (Grayscale, Bitwise, VanEck, 21Shares all filing for spot ETFs), the price still struggles to rise:

• Token unlock pressure: Monthly unlocks release selling pressure
• Increased competition: From other perpetual DEXs like Lighter and Aster
• Whale selling: Large holders continuously offloading at high levels
• Liquidity dispersion: Decreased market participation

In-depth interpretation

The true meaning of this event

The withdrawal and shorting by the former employee essentially reflect a phenomenon: even former insiders of the project do not have confidence in HYPE’s future performance after leaving. This is not an evaluation of the project itself but an objective reflection of the current market situation.

In comparison, Hyperliquid remains solid as a leading perpetual DEX (according to information, its trading volume far exceeds competitors), but the HYPE token’s performance is relatively weak. This mismatch indicates a divergence in market perception of Hyperliquid’s ecosystem and the HYPE token.

Key levels to watch moving forward

Based on analysis of relevant information, HYPE needs to break above $28 (coinciding with its 50-day moving average) to confirm a sustainable recovery. This means it still needs to rise about 12.5% from the current $24.88 to turn the situation around. Given the current market sentiment, this target may face short-term challenges.

Summary

This withdrawal event by the former employee may simply be fund reallocation, but it reflects the current market predicament of HYPE. Weak token prices, panic sentiment, increasing competition—all are long-term issues. Even with institutional interest and expectations for spot ETFs, market sentiment cannot be reversed immediately.

HYPE needs progress on two levels: first, the token itself must break through technical resistance; second, the ecosystem needs to demonstrate new growth drivers to restore investor confidence. The former employee’s shorting choice may just be a microcosm of overall market pessimism.