Is HYPE soaring a trap? In-depth reveal of Hyperliquid black material and short selling signals

📝 Content summary: Hello everyone, welcome to today's in-depth analysis of cryptocurrency. Today we focus on Hyperliquid, token code HYPE, a decentralized perpetual contract exchange based on its own Layer-1 blockchain. It claims to provide zero handling fees, high-speed transactions and full-chain order booking, and has soared recently due to the DeFi boom and airdrop effect. But what risks are hidden behind this wave of upsurge? We will explore its problems from five aspects: market performance, project disputes, chip distribution, community support and regulatory environment, and evaluate whether it is suitable for short selling. All data comes from authoritative sources, full of practical information, remember to like and follow! Let’s look at the market performance first. As of June 19, 2025, the price of HYPE was approximately US$32.14, with a market value of US$10.73 billion, and a 24-hour trading volume of US$416 million, down 6%. Coinbase shows that its all-time high is $45.53, hitting a record on June 16, 2025 and is currently down 29%. It fell 21% in the past seven days, weaker than the overall market decline of 6.4%. The circulation volume is 334 million, accounting for 33% of the total supply of 1 billion, and the fully diluted valuation is US$32.12 billion. CoinMarketCap pointed out that HYPE trading volume surged and the speculative atmosphere was strong. Second, project disputes and issues. Hyperliquid was launched in November 2024 and adopts HyperBFT consensus and HyperEVM execution layer. Coinbase said its total locked position value is $3.2 billion and its daily trading volume is $1.39 billion. However, X's post disclosed that 31 million HYPEs were airdropped in November 2024, accounting for 10% of the circulation, and early user sales triggered price fluctuations. @CryptoSkeptic criticized its only 21 verification nodes, which are at high risk of centralization. In March 2025, Hyperliquid was investigated for US$1.2 billion in market manipulation allegations, and community trust was damaged. MEXC once suspended HYPE due to abnormal transactions, and regulatory alerts frequently sounded. Third, chip distribution and market manipulation. Etherscan data shows that the top 10 holders account for 45% of the circulation, with a high concentration. X's post shows that on June 16, Whale bets of $185 million, accounting for 15.2% of the liquidity, causing concerns about the liquidity crisis. @HyperTrenders warns that the 24-hour trading volume is only $28.7 million, and a 1% reduction in whales may cause a 20% price crash. The relative strength index is 55.33, which is neutral, but the 10-day index moving average of $21.59 suggests a downside risk. If the support falls below the $30 support, the technical side is bearish. Fourth, community support and governance. HYPE is used for governance, fee payment and pledge. Hyperliquid officially says that coin holders can participate in network decision-making. But X's post pointed out that 3/4 of the multi-signature wallet controls funds, and there is a risk of single point of failure. 65% sentiment on X is bullish, fear and greed index is 68, which is neutral. Reddit post shows that users questioned the pressure of node centralization and staking unlocking, and 4.7 million HYPE will be unlocked within 7 days, and the risk of selling has intensified. The holders are about 300,000, and the community is significantly differentiated. Fifth, regulation and market risks. The regulatory pressure on DeFi platform is huge. In May 2025, Benzinga reported that the SEC is concerned about Hyperliquid compliance and HYPE may be restricted. Cointelegraph pointed out that its total locked position value of $3.2 billion shows cash flow, but trading volume relies on speculation, with revenue of $172 million well below valuation. @ha1_usher said that Binance develops competitors may divert users. If regulation tightens or the DeFi boom recedes, prices may plummet, similar to the SUI incident in 2024. Comprehensive analysis shows that HYPE problems are significant: airdrop selling, centralized risk, whale control, and regulatory pressure. Its total locked position value and trading volume show cash flow, but its valuation is relatively high and there are obvious signs of speculation. If the whale sells or the relative strength index exceeds 70, combined with regulatory dynamics, the opportunity to short sell may appear. It is recommended to wait and see until the signal is clear. Be cautious when shorting, and it is recommended to use quantitative trading tools to optimize strategies. For example, aibfarm.com provides accurate market analysis to help capture price turning points and reduce risks. To learn more, please visit their website. In summary, HYPE rises on the DeFi boom in the short term, but black materials and risks may lead to price declines. Short selling requires close attention to whale trends and regulatory trends. Today's analysis ends here. If you like it, please subscribe. See you next time! References: Coinbase, HYPE price data, June 19, 2025 CoinMarketCap, HYPE market data, June 19, 2025 Benzinga, DeFi regulatory report, May 2025 Etherscan, HYPE position data, June 18, 2025 BeInCrypto, HYPE market analysis, June 17, 2025🔍 Related searches: #Hyperliquid #HYPE #DeFi #Blockchain #Permanent contract #Quantitative trading #Short cryptocurrency #Whale trading #Investment risk #Layer-1