Hyperliquid News Today: Manipulation Sparks Liquidity Crisis at Hyperliquid DEX

Hyperliquid's native token, HYPE, faced a significant intraday price drop and subsequent bounce in early November 2025, amid a $30 million manipulation incident involving the memecoin POPCAT. The event, which saw POPCAT's price plunge 43% from $0.21 to $0.12, triggered approximately $63 million in liquidations and raised concerns about systemic risks on the decentralized exchange (DEX). The manipulation, executed through a $3 million bid distribution across 19 wallets, created a false buy wall that collapsed, forcing Hyperliquid's market maker to absorb a $4.9 million loss as liquidity vanished. This marked the third major market disruption on Hyperliquid in 2025, prompting analysts to question the exchange's liquidity management practices.

HYPE's price followed a similar trajectory, falling 7% to $38.25 on the week, with technical indicators suggesting further downside risk if the $35 support level is breached. The DEX's market maker system, already strained by the POPCAT incident, faced additional pressure as retail demand for HYPE waned following a near-$1 billion decline in futures open interest (OI) since early October. As of November 13, HYPE's futures OI stood at $1.56 billion, down from a peak of $2.08 billion on October 30.

Despite the volatility, Hyperion DeFi, the publicly traded entity behind Hyperliquid, reported robust operational results in its Q3 2025 earnings call. The company, which holds a strategic treasury of HYPE tokens, announced continued investments in the token through its ATM program and purchases during the October market selloff. Management emphasized a balanced approach to fundraising and HYPE acquisitions, with plans to explore additional yield-generating opportunities through HyperEVM DeFi protocols. Staking and validator revenues are expected to grow as the network expands, with Hyperion's Kinetic x Hyperion Validator ranking among the top 10 by stake.

Financially, Hyperion DeFi's Q3 2025 results highlighted a record net income of $6.6 million, driven by DeFi-related revenue growth and expanded staking operations. The company reiterated its Q4 guidance of adjusted revenues between $475,000 and $515,000, reflecting a 31%-43% quarter-over-quarter increase. While management avoided short-term price predictions for HYPE, it underscored the token's long-term potential through its utility in reduced trading fees and referral bonuses. Over 30 million HYPE tokens have been autonomously purchased and sequestered by the blockchain since October 2025, funded by trading fees.

The recent turmoil has also prompted operational adjustments. Hyperliquid temporarily paused its Arbitrum bridge while maintaining normal deposit and withdrawal functions. Technically, HYPE's price remains below the 200-day EMA at $39, with the RSI at 43 and MACD below the signal line, signaling ongoing selling pressure. Analysts caution that a break below $35 could reignite bearish momentum, though institutional interest in HYPE-related partnerships suggests potential for future demand.