The Hyperliquid team has made a serious allegation regarding the trading activities of a former employee, who they claim is behind substantial short selling of the HYPE token. This revelation comes in response to a wave of community concerns about unusual trading patterns observed recently.
In a post shared on Discord, pseudonymous co-founder Iliensinc stated that the wallet engaged in aggressive short selling of HYPE is linked to an ex-employee who was terminated in the first quarter of 2024. The company has a strict policy prohibiting all employees and contractors from trading in HYPE token derivatives, underscoring their commitment to a zero tolerance stance on insider trading.
“To address recent community inquiries regarding the address 0x7ae4c15…1028: this address belongs to an ex-employee who was terminated in Q1 2024,” Iliensinc clarified. “This individual is no longer associated with Hyperliquid Labs, and their actions do not reflect our team”s standards or values.”
The wallet in question has reportedly sold over 70,000 HYPE tokens and holds approximately 98,200 HYPE tokens, in addition to maintaining a short position that is currently experiencing significant losses.
This situation raises important questions about the integrity of trading practices within the decentralized finance (DeFi) space, particularly concerning the potential for insider trading and the ethics surrounding employee actions post-termination. As the industry continues to mature, the establishment of trust and transparent practices remains paramount for platforms like Hyperliquid.
