Hyperliquid News Today: Hyperliquid's Buybacks vs. Whale Shorting: Crypto Derivatives in Volatile Crosshairs

The crypto derivatives market is experiencing heightened volatility as major players and protocols navigate a turbulent post-crash landscape. According to a Coinotag report, Hyperliquid led 2025's crypto buyback efforts with $644 million in repurchases, accounting for nearly half of the year's $1.4 billion total. These buybacks aim to reduce selling pressure and signal confidence in token economics, a strategy mirrored by projects like LayerZero and Pump.fun.

Meanwhile, Bitcoin's post-crash environment has seen aggressive shorting from institutional and whale traders. A prominent "BitcoinOG(1011)" whale, who accurately predicted the October 10–11 crash, has expanded its bearish bets with $140 million in open short positions on Hyperliquid, according to Yahoo Finance. This whale's actions have drawn attention for their potential to influence market sentiment, especially as others replicate its trades. Another trader, dubbed the "Trump Insider Whale," has amplified its short exposure to $227 million, as reported by Coinpaper.

The volatility has also led to significant liquidations. ENA, a token linked to Ethena's synthetic stablecoin, experienced a 10% flash crash on October 23, triggering $47.38 million in liquidations for Andrew Kang's Hyperliquid-linked wallet, according to Lookonchain. Such events highlight the fragility of leveraged positions in a market where rapid price swings can erase gains overnight.

Individual traders are not immune to these risks. Huang Lizheng, known as "Brother Ma Ji," faced a $13.5 million loss after taking a highly leveraged ETH position on Hyperliquid, according to Coinotag. His case underscores the dangers of excessive leverage in DeFi, where collateral management and real-time monitoring are critical. Conversely, James Wynn, a high-profile Hyperliquid user, has taken a bullish stance on XRP, allocating a substantial portion of his portfolio to the asset, as covered by TradingView. His move has sparked debate about whether it reflects genuine conviction or platform-driven hype.

Hyperliquid's role in these dynamics has drawn scrutiny. Founder Jeff Yan defended the platform's auto-deleveraging mechanism during the October 10 crash, arguing it saved traders millions by closing profitable short positions in comments to CoinMarketCap. The exchange also passed potential profits to users instead of retaining them as protocol revenue, a contrast to centralized exchanges' opaque liquidation practices.

As the market grapples with these developments, the interplay between whale activity, buyback strategies, and leveraged trading remains a focal point. With Bitcoin trading near $108,000 and Ethereum struggling to regain momentum, the coming weeks will test whether these forces drive further correction or catalyze a rebound.