CoinDesk
Hyperliquid's HYPE token fell roughly 11% to around $67 on Thursday after Arthur Hayes, the BitMEX cofounder and one of the asset's most prominent bulls, disclosed he had sold his entire position just days after reiterating a $150 price target.
Hayes framed the exit as macro caution rather than a thesis change, citing rising oil prices tied to the Iran conflict, a cluster of high-profile AI IPOs expected in the coming months and his view that broader financial markets could peak between now and September. The reversal drew sharp backlash in crypto circles given how publicly he had championed the token — including a March essay laying out a roadmap to $150 — and prompted DeFiance Capital founder Arthur Cheong to call the move "the epitome of a guy that over-trades his position."
Why it matters
The episode crystallises a tension that has hung over HYPE all year: the fundamentals have been genuinely strong, but the price has run ahead of them. 10x Research's Markus Thielen, who has been a vocal HYPE bull, said Hyperliquid remains "one of the most impressive businesses in crypto," citing roughly 77% gross margins, a fully onchain order book and a token buyback program funded by protocol revenue. Even so, at recent highs near $75 the token was trading at roughly 25 times projected fee revenue — close to its richest multiple of the past year — while protocol revenue was still well below its peak.
Hayes' timing also lands against a deteriorating tape. Bitcoin fell back toward $60,000 near its 2026 lows this week, and HYPE's 100% gain over the prior month had already pushed the rally into overextended territory on Thielen's read.
Market impact
HYPE still holds a roughly 166% year-to-date gain despite Thursday's slide and remains one of the best-performing assets in crypto, but two concrete overhangs now frame the next move: the rich fee-revenue multiple near the highs, and a large token unlock scheduled for June that Thielen warned could introduce additional selling pressure.
Frequently asked questions
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Why did Arthur Hayes sell his HYPE position?
Hayes framed the exit as macro caution rather than a change in his HYPE thesis, citing rising oil prices tied to the Iran conflict, a cluster of AI IPOs expected in the coming months, and his view that broader financial markets could peak between now and September.
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How far below his $150 target did Hayes actually exit HYPE?
HYPE fell to around $67 on Thursday after Hayes disclosed the sale, roughly 55% below his $150 target and well below the record highs near $75 hit earlier in the week.
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What did Markus Thielen at 10x Research say about HYPE's valuation?
Thielen said Hyperliquid remained "one of the most impressive businesses in crypto" but noted that at recent highs near $75 HYPE traded at roughly 25 times projected fee revenue — near its richest multiple of the past year — while protocol revenue was still well below its peak.
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Is HYPE still a top-performing crypto asset this year?
Yes. Even after Thursday's slide, HYPE held a roughly 166% year-to-date gain and remained one of the best-performing assets in crypto, though it pulled back from record highs.
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What near-term overhangs does HYPE face after the selloff?
Two concrete overhangs now frame the next move, per Thielen: a rich fee-revenue multiple near the highs, and a large token unlock scheduled for June that could introduce additional selling pressure.
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