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Jeffrey Huang exits $25.8M HYPE stake amid growing concerns
Taiwanese music star and prominent crypto collector Jeffrey Huang — widely known as “Machi Big Brother” — has liquidated his entire Hyperliquid (HYPE) position, realizing a multimillion-dollar loss as market pressure around token vesting intensified. Blockchain analytics shared by the pseudonymous researcher MLM show Huang sold approximately $25.8 million in HYPE, taking an estimated $4.45 million realized loss after weeks of holding the token.
Position details and broader holdings
On-chain records indicate Huang also surrendered more than $19 million in unrealized gains over the preceding week. Despite the HYPE exit, the investor retained a substantial Ether (ETH $4,186) long position valued at more than $117 million, along with a $28.4 million Pump.fun (PUMP) holding, according to Hypurrscan snapshots.
The HYPE sale followed a larger whale move that withdrew roughly $122 million in HYPE on Monday, a sign of profit-taking that heightened concerns about the token’s capacity to absorb incoming supply once unlocks begin.
Analysts flag $11.9B in upcoming HYPE token unlocks
Market researchers are warning the HYPE ecosystem faces a significant test when its 24-month vesting schedule begins. Maelstrom — the family office fund linked to BitMEX co-founder Arthur Hayes — estimated the vesting will release about $11.9 billion worth of HYPE tokens to team members. Maelstrom’s analysis suggests current buybacks would only soak up roughly 17% of the monthly inflow, leaving an estimated $410 million in potential selling pressure each month.
Why unlock schedules matter
Large token unlocks can create supply shocks, depress prices and trigger margin calls in leveraged markets — especially for protocols that rely on token incentives for liquidity or trader rewards. The Maelstrom note came soon after Hayes sold his HYPE holdings, a transaction reportedly used to finance a new vehicle purchase.
Hyperliquid market share declines as rivals gain traction
Hyperliquid’s dominance in decentralized perpetual futures has weakened ahead of the unlocks. Dune analytics show Hyperliquid’s share of DEX perpetuals fell to about 33% on Tuesday from roughly 65% in mid-July. That contraction corresponds with a broader competitive shift across decentralized exchanges (DEXs), where alternative perpetual platforms have taken market share.
Top DEXs by market share. Source: Dune.com
New entrants and liquidity dynamics
Projects such as Aster and Lighter have each expanded their market presence: Aster rose from 1.3% to 20% and Lighter from 12.8% to 17.1% over the same period. Aster — associated with Binance co-founder Changpeng Zhao — briefly surpassed $2 billion in total value locked (TVL) after launching its ASTER token, an event that coincided with a short-lived HYPE price spike to an all-time high of $59.29. At the time of writing, HYPE trades near $48.20, roughly 9% lower on the week (HYPE $47.54).
Industry observers, including BNB Chain’s Sarah Song, say the next phase for DEXs will hinge on improvements in sustainable liquidity provisioning, product design, low-latency execution and diverse collateral options. Cost efficiency and blockchain performance remain critical for attracting mainstream traders and institutional capital.
For traders and DeFi participants, the HYPE story underscores the importance of tokenomics, vesting schedules and competitive pressure in perpetual futures markets. As unlock dates approach, volatility and liquidity migration between DEXs are likely to remain elevated.
Source: cointelegraph
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