Hyperliquid (HYPE) Slumps on Institutional Selling and Governance Uncertainty

Hyperliquid (HYPE) has seen a recent price drop of 3.37 points over approximately 41 hours, largely driven by institutional selling and transfers to centralized venues.

Large institutions such as Multicoin Capital, Selini Capital, and Bitwise have moved significant amounts of HYPE to exchanges like Coinbase Prime and OKX, contributing to the sell pressure.

The price drop has also been influenced by a confidence hit from a SK Hynix perpetual flash-crash, which triggered about $57.4 million in liquidations across 960 accounts in seconds.

Additionally, governance noise around HIP-3 and HIP-4 has weighed on sentiment, with some community members seeing the proposed upgrade as a dilution of Hyperliquid's permissionless ethos.