Arthur Hayes has exited his entire HYPE position worth about $18 million, triggering a sharp pullback in Hyperliquid’s token price and raising fresh questions about whether the rally can continue.
Key Takeaways
- Arthur Hayes sold 247,334 HYPE tokens worth roughly $18 million and fully exited his NEAR position.
- HYPE retreated from its recent all time high after the sale, while broader crypto markets also faced heavy pressure.
- Hayes cited rising energy costs, upcoming AI IPOs, and concerns about a market peak before September as reasons for taking profits.
- Despite the selloff, institutional interest in Hyperliquid remains strong with new ETF products and continued investment inflows.
What Happened?
BitMEX co-founder Arthur Hayes surprised the crypto community after revealing that he had sold his entire holdings of Hyperliquid’s HYPE token and NEAR. The move came just days after Hayes publicly backed Hyperliquid and predicted strong future performance for the token.
The announcement sparked a wave of profit taking across the market, pushing HYPE lower after it recently climbed to a record high above $75. While the token experienced a notable correction, it continued to trade among the strongest performing large cap cryptocurrencies of 2026.
Arthur Hayes (@CryptoHayes) has dumped 247,334 $HYPE ($18.02M) and an unknown amount of $NEAR.
— Onchain Lens (@OnchainLens) June 4, 2026
Interestingly, the sale comes shortly after Arthur publicly challenged @KyleSamani to a $100K charity bet, claiming that $HYPE will outperform every other top-10 cryptocurrency by… https://t.co/AoaN5klG0W pic.twitter.com/JDqsZ9CK2u
Arthur Hayes Reverses Course on Hyperliquid
According to on chain data shared by monitoring platform Onchain Lens, Hayes sold approximately 247,334 HYPE tokens valued at around $18 million. Blockchain data also showed the funds moving to market maker Flowdesk before the sale.
The decision caught many traders off guard because Hayes had been one of Hyperliquid’s most vocal supporters. In recent weeks, he suggested that HYPE could reach $150 and even placed a $100,000 charity wager on the token outperforming other major cryptocurrencies by the end of the year.
Hayes also previously argued that HYPE could eventually surpass Solana in market capitalization during the current bull cycle.
Explaining his decision on X, Hayes wrote:
I just dumped my entire $HYPE and $NEAR position, I will explain why in my essay “Reality Test” dropping next Tuesday.
— Arthur Hayes (@CryptoHayes) June 4, 2026
TLDR:
– Higher energy prices due to Iran war and inventory restocking
– 3 Mega AI IPOs between now and early Q3
– Prediction that Trump goes anti-AI to win…
He later summarized several factors behind the move and indicated that he believes it may be time to lock in profits.
Why Hayes Decided to Sell?
Hayes pointed to several macroeconomic and political developments that influenced his decision.
Among them were higher energy prices linked to the Iran conflict and inventory restocking, which he believes could contribute to inflationary pressures across global markets.
He also highlighted expectations for three major AI related IPOs before the early third quarter, widely believed to include companies such as SpaceX, Anthropic, and OpenAI. Hayes suggested these offerings could attract substantial investor capital and divert liquidity from risk assets.
Another factor involved potential changes in U.S. political messaging around artificial intelligence. Hayes suggested that President Donald Trump could adopt a tougher stance on AI if it becomes politically advantageous ahead of the midterm elections.
Taken together, Hayes said these developments could push financial markets toward a major top sometime between now and September.
“I think highs in markets will happen now and September,” Hayes said, adding that it was “time to take profit.”
Hyperliquid Continues to Attract Institutional Interest
Despite the selloff, signs of institutional adoption around Hyperliquid remain strong.
On June 3, Grayscale launched its Hyperliquid Staking ETF, trading under the ticker HYPG. The product joined a growing list of regulated investment vehicles tied to the Hyperliquid ecosystem.
Investment demand has also remained resilient. Data cited in market reports showed Hyperliquid related products attracting nearly $3 million in fresh inflows on June 3, extending a multi week streak of positive inflows.
At the same time, Hyperliquid has continued expanding its presence in the derivatives market. The decentralized exchange recently captured a record share of global perpetual futures trading activity while increasing its trading volume relative to Binance.
Key Levels Traders Are Watching
The market reaction pushed HYPE lower from its recent all time high near $75.5, with the token falling more than 10% from peak levels.
Analysts are closely monitoring the $64 to $60 range, where large clusters of leveraged positions remain concentrated. Market data suggests that a sustained move below these levels could expose additional downside toward the $55 area.
On the upside, a recovery above previous highs could reignite bullish momentum and force short sellers to cover positions.
For now, traders remain focused on whether Hyperliquid can maintain support above $60, a level many view as critical for preserving the token’s broader bullish structure.
CoinLaw’s Takeaway
In my experience, major profit taking by high profile investors often creates short term panic, but it does not always signal the end of a trend. What stands out here is that Arthur Hayes chose to exit while institutional interest in Hyperliquid continues to grow through ETFs, inflows, and expanding derivatives activity.
I found that contrast particularly important. While Hayes clearly sees macro risks ahead, Hyperliquid’s fundamentals and adoption metrics suggest investors are still willing to back the project. The battle around the $60 support level will likely determine whether this is simply a healthy correction or the beginning of a deeper retracement.
