Taiwanese celebrity investor Jeffrey Huang, known as “Machi Big Brother,” has exited his $25.8 million HYPE position at a loss, underscoring mounting pressure on Hyperliquid as rivals gain ground.
Celebrity Exit Highlights Pressure on Hyperliquid
The well-known digital asset investor sold his entire HYPE holdings, realizing a $4.45 million loss after weeks of volatility. Blockchain data also indicates that he forfeited over $19 million in unrealized gains, as the token failed to maintain its recent highs.
Despite the setback, Huang continues to hold large positions in Ether (ETH) and Pump.fun (PUMP), valued at over $117 million and $28 million respectively.
This move follows a $122 million whale withdrawal in HYPE tokens, which analysts described as a sign of weakening investor confidence.
Token Unlock Raises Supply Concerns
A major challenge lies ahead for Hyperliquid: the November 29 vesting schedule, which will release $11.9 billion worth of HYPE tokens to insiders and team members.
“Only about 17% of the monthly supply could be absorbed by current buybacks,” said Lukas Ruppert of Maelstrom Research, warning that the market may face an overhang of $410 million in tokens each month.
Such large-scale unlocks could apply significant downward pressure, especially if selling accelerates.
Hyperliquid Market Share Declines as Rivals Rise
Hyperliquid’s market share has fallen to 33%, down from 65% just two months ago. Competitors Aster and Lighter are quickly capitalizing, with Aster now holding 20% market share and Lighter reaching 17.1%.
According to Sarah Song, head of business development at BNB Chain, this reflects a competitive cycle within decentralized exchanges. She noted that the future of platforms like Hyperliquid will depend on solving liquidity challenges, collateral diversification, and blockchain efficiency.
The HYPE token recently touched an all-time high of $59.29, before retreating to around $48. With institutional sell-offs and a looming token unlock, analysts suggest the coming months could represent the platform’s first true stress test.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.