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Hayes Sells HYPE and Market Retraces After ETF-Fueled Rally

Hayes’ June 4 liquidation pushed HYPE down more than 10 percent to test $64–$60 support.

Overview

  • U.S.-listed HYPE exchange-traded products from Bitwise, 21Shares and Grayscale drew fresh institutional capital and helped drive HYPE into price discovery, with reported net inflows above $136 million over three weeks.
  • The token climbed to new nominal highs near $74–$75 earlier this week as Hyperliquid captured record perpetual-futures volume, giving the rally both retail and institutional momentum.
  • A large on-chain trader closed a heavily loss-making HYPE short and flipped long, a move that reinforced bullish momentum and signaled concentrated speculative positioning.
  • Arthur Hayes, co-founder of BitMEX, disclosed on Thursday that he sold his entire HYPE and NEAR holdings, a roughly $18 million HYPE sale that triggered profit-taking and a rapid price pullback.
  • Hyperliquid’s fee-funded buyback program has repurchased more than $1.16 billion of HYPE and underpins structural demand, but concentrated holdings, high derivatives open interest and scheduled token unlocks increase the risk of further sharp swings.