Hyperliquid's HYPE drops 4% after Arthur Hayes sells entire position

Hyperliquid's HYPE token fell 4% to $69.60 after BitMEX co-founder Arthur Hayes said he sold his entire position, ending a months-long bullish bet on the perpetuals exchange's native token.

"Higher energy prices due to the Iran war, inventory restocking and three large AI IPOs expected before early Q3," Hayes said in a post on X, explaining the sale. He also predicted President Donald Trump would turn against AI to help Republicans win the midterm elections.

Hayes had accumulated more than 26,000 HYPE tokens worth roughly $1.1 million as of April, according to BeInCrypto, and had set a price target of $150, predicting HYPE would overtake Solana. The sale also included his entire NEAR Protocol position. Despite the exit, Hayes remains bullish on Worldcoin, targeting $10 per WLD token.

The sale by one of crypto's most vocal HYPE supporters risks triggering further selling pressure from retail traders who followed his calls. HYPE had been one of the few gainers during this week's broader market rout, rising 26% to $72.50 before the announcement, while Bitcoin slid 12% to below $64,000.

The move comes as Hyperliquid continues to dominate the perpetuals market, processing roughly $12.6 billion in 24-hour volume, more than three times second-place Aster's $4 billion, DefiLlama data shows. Open interest on Hyperliquid sits above $10 billion.

Hayes said he expects markets to top between now and September, framing the sale as profit-taking before the peak. A fuller explanation is expected in his Reality Test essay next week.

The sell-off contrasts with a recent $46 million loss suffered by a trader who shorted HYPE, highlighting the token's volatility. Meanwhile, fund managers such as Bizantine Capital Managing Partner March Zheng are betting on lower-cost challengers like Lighter, whose LIT token has gained more than 80% over the past month.

This article is for informational purposes only and does not constitute investment advice.