Hyperliquid Strategies (@HypeStrat) started buying $HYPE again a few hours ago. With its mNAV above 1.10 for the past few days and very high trading volume in PURR, it has likely been issuing shares through its ATM, increasing its cash reserves and giving it more firepower to buy millions of dollars worth of HYPE. It is following a similar pattern to a few months ago: TWAPing into HYPE through Anchorage in batches of roughly $10M. There is one caveat: when large public TWAPs like this appear, big sellers often show up as well to use the new liquidity as exit liquidity. And that appears to be happening again. An entity holding more than 680k HYPE ($55M) started selling almost at the same time HSI started buying. It is currently selling slowly at an estimated pace of around 75k HYPE ($6M) per day. This same entity was previously covered by mlm (@mlmabc) after buying HYPE in November 2025 through a series of very unusual onchain movements.

Tomorrow I'm releasing a DROPS episode with @0xOmnia - of the founding team at @kinetiq_xyz. Omnia runs the largest protocol on Hyperliquid, a business that went from zero to roughly $2.5 billion in staked deposits in about five weeks and is now the third biggest liquid staking protocol on earth, trailing only Binance, Ethereum and Lido. We get into why he thinks hyperEVM's biggest "failure" is actually by design, and why Kinetiq's new L2 - ELYSIUM - might be the first L2 in crypto that adds value instead of extracting it. We talk about: - Why Kinetiq capped deposits at $2.5 billion instead of taking on more - How @Markets_xyz turned Kinetiq into a partner, not a competitor, to @tradexyz - Why Jeff and Omnia agree that hyperEVM was never built to be fast - What Elysium is, and why Omnia calls it the first value-accretive L2 since Arbitrum - How the $KNTQ token routes protocol revenue straight into real-time buybacks - Why Hyperliquid is undoubtedly winning perps but still trails in spot and prediction markets - The real difference between Hyperliquid winning on technology versus winning on PR - Why 30 percent of KNTQ's circulating supply is already staked And much more... DROPS out tomorrow

A fresh wallet holding more than 20% of the $XRP OI on Hyperliquid is up more than $13M on a long position. But it’s not what you think. This trader opened the long 2 days ago and added more over the last 2 hours, bringing the position to $5.34M in margin and $13.8M in uPNL at current prices. At first glance, he might look like an extremely good trader, or even an insider who knew what was about to happen. But the truth is that this same trader tried almost exactly the same setup with another address just 2 months ago, and the market did the exact opposite. Back then, he opened a $30M XRP long, representing more than 25% of XRP OI on Hyperliquid. A few days later, XRP dumped, the position was liquidated, and he lost more than $8M that day. You can find both addresses here: It turns out he’s probably not an insider or a sophisticated trader. He’s just a gambler making massive directional bets. These kinds of trades can create very misleading signals. Traders see a fresh wallet taking an enormous position and assume it must know something, creating false confidence that leads them to trade without any real edge. That’s exactly why we’re building a much stronger system to help our traders identify these patterns and avoid falling into these traps. More coming soon.

Over the last 24 hours, Portfolio Margin accounts accounted for more than 6% of Hyperliquid’s total liquidation notional. Specifically, 64 accounts identified as Portfolio Margin accounts had perp positions liquidated after their portfolio margin ratio breached the liquidation threshold. These liquidations represented more than $45M in gross perp notional and recorded more than $7M in negative realized PnL for the affected accounts. These were the top 3 liquidations: 1) 0xa8cde6a19789e4d7964ce0e3da14aa29291d7275 - $31.18M liquidated / $6.32M losses 2)0xad227f63d34e7251c1d0ab65e64eeea07aee4e44 - $8.09M liquidated / $644.37k losses 3) 0xc30c7ea910a71ce06ae840868b0c7e47616ba4c9 - $2.13M liquidated / $177k losses The most interesting part is that there wasn’t any backstop liquidation during this period. The $45M therefore came from market liquidation of perp positions, not from a backstop takeover of HYPE or BTC collateral.