Hyperliquid Labs-Labeled Wallet Distributes $330 Million in HYPE

A wallet identified by Hypurrscan as Hyperliquid Labs distributed 3.75 million $HYPE, worth roughly $330 million, on Oct. 7 after the tokens moved from staking into its spot balance. A receiving wallet subsequently returned 1.25 million $HYPE to staking.

The distribution passed through five addresses. Each received an initial one-$HYPE transfer, followed by 374,999 $HYPE and another 375,000 $HYPE—750,000 tokens apiece. Hyperliquid’s explorer records the two larger batches on Oct. 7. The five addresses then forwarded the tokens to the same wallet, 0x8757…31d1.

For traders assessing potential selling pressure, a third of the released tokens was put back into staking rather than left in the receiving wallet’s spot balance. The transfers establish the movement of tokens, not a sale into public exchange order books.

Onchain analyst Onchain Lens described the distribution as part of an over-the-counter deal with an unnamed institution. “The Hyperliquid Labs team has arranged an OTC deal with an undisclosed institution,” it wrote. The onchain transfers do not reveal the buyer’s identity, the price paid or any contractual restrictions on subsequent sales.

Where the Tokens Went

The receiving wallet’s history shows a 1.25 million-$HYPE transfer into staking and a delegation of that amount to a validator. Its spot balance stood at approximately 1.875 million $HYPE, according to HyperEVMScan’s HyperCore balance display.

The wallet also moved tokens to HyperEVM and sent 625,000 $HYPE onward to address 0x3277…1BDF. HyperEVMScan records that transfer at 2:06 p.m. ET on Oct. 7. These movements show that the five initial recipients were intermediate stops, not evidence of five separate institutional buyers.

The 3.75 million-token release is equivalent to about 1.7% of the 222.4 million $HYPE circulating supply reported by CoinGecko. That comparison measures the batch’s size, not an independently measured increase in circulating supply. At CoinGecko’s $87.93 price at 11:25 p.m. ET on Oct. 7, the tokens were worth approximately $329.7 million, compared with $715.6 million in reported 24-hour trading volume. The valuation is a market-price estimate, not a disclosed OTC sale price.

Hyperliquid Strategies CEO David Schamis rejected speculation that his company was the buyer. “I've said this publicly a few times so I'll say it again here: this was not us,” he wrote.

The restaked portion is subject to the protocol’s withdrawal mechanics: Hyperliquid’s documentation specifies a seven-day queue for transfers from staking accounts back to spot accounts.