Hyperliquid (HYPE) dropped 8% on Friday after Hyperliquid Strategies (PURR) filed an application to become a futures commission merchant (FCM), seeking regulatory approval to bring perpetual futures markets to US customers.
The company disclosed the development in its Q3 financial results released Thursday. Through a subsidiary, Hyperliquid Strategies intends to carry US customer accounts for permissioned markets deployed under Hyperliquid's proposed HIP-3 framework, subject to regulatory approval.
The proposed arrangement would allow independent operators to launch and manage markets on Hyperliquid's infrastructure while meeting applicable regulatory requirements. The underlying blockchain would continue operating as a neutral infrastructure layer.
Hyperliquid Strategies CEO David Schamis said the company deployed $802 million during the quarter and filed the FCM application as part of its efforts to bring markets operating on Hyperliquid onshore.
“Owning HYPE is how we aim to capture economics associated with the Hyperliquid protocol; setting up an FCM is how we intend to help bring markets deployed on Hyperliquid onshore,” Schamis said.
The filing comes after Hyperliquid Strategies raised $911 million in equity capital in Q3, deploying $785 million to acquire 9.1 million HYPE tokens and $17 million to repurchase 2.7 million PURR shares.
Its treasury increased from 29.3 million HYPE in June to approximately 38.5 million HYPE by September 30. The company also reported $254.6 million in cash and cash-like instruments and no outstanding debt.
Hyperliquid Strategies previously increased its stock repurchase authorization from $30 million to $100 million and extended the program through October 31, 2027.
The regulatory development comes as HYPE faces renewed selling pressure following a rally that briefly pushed the token to $97.
Blockchain analytics platform Santiment reported Thursday that four large whale wallets had closed their HYPE long positions, collectively realizing approximately $5 million in profits after the rally.
Citing Score Arena, Santiment highlighted one wallet that had accumulated HYPE since late May before selling its entire 310,000-token position. The address reportedly sold approximately $225,000 worth of HYPE every five minutes as the token traded between $94 and $95, eventually realizing around $2.4 million in profits.
Two other wallets also exited their positions shortly after the rally. One reportedly generated approximately $987,000 in profits from trading 98,000 HYPE, while another secured nearly $1 million from approximately 140,000 tokens.
The sales followed billionaire investor Stanley Druckenmiller’s investment in Trade[XYZ], a trading platform built on Hyperliquid.
HYPE has since reversed its gains and trades around $77, down 8% over the past 24 hours at the time of writing.
On the daily chart, HYPE trades at $77, holding below the short- and medium-term Exponential Moving Averages (EMAs), which keeps the near-term tone bearish. The Relative Strength Index (RSI) at 41 and a low Stochastic reading near 15 suggest weak upside momentum after the recent rejection from the descending trendline region.
On the downside, initial support emerges at the horizontal level near $75.69, ahead of deeper cushions at $67.63 and $61.16 should selling pressure extend. On the topside, the first hurdle is the 100-day EMA at $78.10, followed by the 20- and 50-day EMA cluster around $82.33–$82.51 and the broken descending trendline area. Above that, resistance is reinforced by $85.04 and $97.84.
(The technical analysis of this story was written with the help of an AI tool. Know more.)