Hyperliquid News Today: HYPE Defies Crypto Sell-Off, Hits $40 on $1B Buyback and Retail Surge

The cryptocurrency market experienced a significant correction in the past four hours, with $106 million in liquidations recorded across major exchanges, predominantly from long positions, according to Coinotag. This sell-off occurred amid renewed volatility in the sector, driven by geopolitical tensions and regulatory uncertainty. However, the market has shown signs of stabilization, particularly in the case of Hyperliquid (HYPE), whose native token has surged above $40 amid a $1 billion buyback initiative and strong retail demand, according to FXStreet.

Hyperliquid's price rally has been fueled by a combination of strategic corporate moves and growing institutional interest. On October 22, Hyperliquid Strategies Inc. (HSI), a merger-stage entity formed through the consolidation of Sonnet BioTherapeutics and Rorschach I LLC, filed an S-1 registration with the U.S. Securities and Exchange Commission (SEC) to raise $1 billion via an equity offering, according to a Coindesk report. The proceeds will be used to bolster HSI's balance sheet and fund the accumulation of HYPE tokens, which are currently held in a treasury valued at $583 million, according to Yahoo Finance. This development has sparked a 12% price surge for HYPE, pushing it beyond $38.92 and testing key resistance levels, Yahoo Finance reported.

The bullish momentum is further supported by rising open interest (OI) in HYPE futures, which hit $1.55 billion—a 20% increase in a single day, Yahoo Finance reported. CoinGlass data also highlights a steady recovery in OI from $1.27 billion to $1.37 billion since last week, indicating a shift in market sentiment from bearish to cautiously optimistic, according to FXStreet. Additionally, the protocol's Total Value Locked (TVL) has risen to $2.17 billion, reflecting growing confidence in Hyperliquid's DeFi ecosystem, FXStreet noted.

Retail and institutional traders are also showing renewed appetite for long positions. A prominent crypto whale, identified as "0xc2a," has capitalized on recent volatility to amass a $300 million portfolio in Bitcoin and Ethereum, securing a $17 million profit in two weeks, according to BeInCrypto. This trader's success underscores the potential for strategic positioning in a market that has seen over $20 billion in liquidations since mid-October, BeInCrypto also noted. The whale's active long positions—$155 million in BTC and $131 million in ETH—highlight a broader trend of risk-on behavior despite ongoing macroeconomic headwinds, according to Finbold.

Market analysts point to technical indicators as further validation of HYPE's recovery. The token is currently trading above its 200-day exponential moving average (EMA) at $36.11, supported by a bullish engulfing candle on the daily chart, FXStreet reported. Meanwhile, the moving average convergence divergence (MACD) indicator has generated a buy signal, aligning with broader crypto market optimism, FXStreet added. However, challenges remain: HYPE's 50-day and 100-day SMAs are still above its current price, suggesting a bearish trend persists until $46.31 and $44.95 levels are cleared, according to Coindesk.

The liquidation event earlier this week also exposed vulnerabilities in the crypto infrastructure. BitMEX CEO Stephan Lutz attributed the exchange's resilience during the crash to its aggressive multi-asset margining system and a disciplined insurance fund structure, Finbold reported. While BitMEX only recorded $37.9 million in liquidations, other platforms faced multi-billion-dollar losses, underscoring the need for robust risk management protocols, Finbold added.

As the market digests these developments, attention remains on Hyperliquid's ability to sustain its rally. A break above $40 would cement the level as support, potentially paving the way for a retest of HYPE's all-time high of $59.57, FXStreet noted. For now, the interplay between corporate strategy, technical strength, and whale activity is shaping a narrative of cautious optimism in an otherwise turbulent sector.