Hyperliquid News Today: Hyperliquid's Token Rebounds as Buybacks and Retail Demand Signal Renewed Confidence

Hyperliquid (HYPE) has shown signs of recovery after a sharp decline in Open Interest (OI) following the October 10 market crash, with the token trading 3% higher on Monday, according to an FXStreet report. The platform's OI dropped to $7.2 billion on October 15 from a peak of $15.1 billion just days earlier, signaling a risk-off sentiment among traders. Despite this, the Hyperliquid Assistance Fund has acquired 33.53 million HYPE tokens worth $1.29 billion, aiming to reduce circulating supply and support demand. Meanwhile, renewed retail interest in HYPE derivatives—evidenced by a 2.45% rise in OI to $1.34 billion—suggests cautious optimism among traders.

The market's attention has also shifted to XRP, as prominent Hyperliquid trader James Wynn revealed a significant investment in the Ripple-backed asset. Wynn, known for high-leverage bets, disclosed allocating a "significant portion" (likely $25 million or more) into XRP after a deep dive into its potential to revolutionize cross-border payments, according to a TradingView article. XRP's price rose 4.17% to $2.55 in the 24 hours following the announcement, with weekly gains reaching 8.2%. Critics speculate the move could be a marketing stunt for Hyperliquid, but Wynn insists it reflects genuine conviction in XRP's utility.

Hyperliquid founder Jeff Yan has defended the platform against claims it prioritizes protocol revenue over trader interests, emphasizing that its auto-deleveraging (ADL) mechanism saved users millions during the October 10 crash, according to a Crypto.News report. Yan noted that while the liquidity pool could have generated hundreds of millions more in profit by liquidating more positions, the platform opted for a "win-win" approach to reduce risk exposure. He also highlighted the transparency of Hyperliquid's on-chain operations, contrasting it with centralized exchanges that underreport liquidations.

Amid these developments, DeepSeek AI has positioned DeepSnitch AI as a top crypto buy for 2025, outpacing both HYPE and XRP in its projections, according to a FinanceFeeds analysis. The AI model argues DeepSnitch's presale—backed by over $459,000 in investments—offers "asymmetrical upside" through tools that level the playing field for retail traders. While XRP and Hyperliquid remain bullish, DeepSeek's analysis underscores a shift toward projects with real-world utility and verified smart contracts.

Crypto.com's recent application for an OCC federal charter further signals institutional confidence in the sector, joining peers like Coinbase and Ripple, as reported in a TradingView report. The move aims to bolster custody services and staking offerings, with Crypto.com already outpacing Coinbase in trading volume this year.