Hayes' Exit, $122M HYPE Sell-Off Highlight Crypto's Leadership Dependency

Hyperliquid, a decentralized exchange (DEX) platform, announced that a major whale account withdrew $122 million in HYPE tokens on September 18, 2025, coinciding with the departure of founder Arthur Hayes from the project. The withdrawal, which occurred during a period of heightened volatility for the token, saw the price of HYPE drop to $49.11 from a recent all-time high of $59.30. Hayes, who co-founded Hyperliquid in 2022 and previously led BitMEX, has not publicly commented on the exit, though sources close to the project suggest the move was part of a strategic restructuring.

The whale’s transaction, one of the largest single-day outflows in the token’s history, triggered immediate market concern. On-chain analytics firm Glassnode noted a surge in large wallet activity, with over $150 million in HYPE tokens moving across multiple addresses in a 24-hour period. This activity contrasted with broader market trends, where altcoins like Ethereum and Solana continued to gain traction amid a broader crypto bull run. Analysts attributed the HYPE sell-off to uncertainty surrounding Hyperliquid’s governance structure following Hayes’ departure, as the project lacks a clear roadmap for leadership succession.

Arthur Hayes’ exit marks the latest chapter in his controversial career in crypto. After stepping down as CEO of BitMEX in 2020 amid regulatory scrutiny, Hayes launched Hyperliquid as a high-speed DEX tailored for institutional traders. The platform quickly gained traction, with HYPE’s market capitalization peaking at over $4 billion in early 2025. However, the recent withdrawal highlights the challenges of sustaining decentralized governance without a charismatic leader. “Hayes was the face of Hyperliquid, and his departure has created a vacuum,” said one industry observer, who requested anonymity due to the sensitivity of the topic.

The sell-off also raised questions about the role of large token holders in shaping market sentiment. HYPE’s price decline mirrored broader concerns about over-reliance on whale activity in smaller-cap crypto projects. According to data from CoinGecko, HYPE’s 30-day trading volume had already contracted by 20% prior to the withdrawal, suggesting underlying pressure. The outflow exacerbated these trends, pushing the token’s dominance in the altcoin market to a six-month low.

Market participants are now watching for signs of stabilization. While some traders view the dip as a buying opportunity, others warn of further volatility. “HYPE’s fundamentals—such as its high-performance order book and institutional user base—remain strong, but leadership uncertainty is a red flag,” said a crypto analyst with a major Wall Street firm. Hyperliquid’s development team has emphasized continued progress on its v2.0 upgrade, which aims to expand cross-chain capabilities, but has not addressed the founder’s exit publicly.

The withdrawal underscores the fragility of projects heavily tied to individual leaders. Hayes’ departure comes as the crypto industry grapples with regulatory uncertainty and a shift toward institutional-grade infrastructure. For Hyperliquid, the challenge will be to maintain user trust while navigating the transition. Whether the project can recover from the recent turbulence will depend on its ability to demonstrate robust governance and execution without its founding visionary.

Source: [1] CoinGecko (https://www.coingecko.com/en/highlights/all-time-high-crypto)