HyperLiquid publicly pushed back on claims of solvency and integrity, pointing to on-chain data to support its claims.
The platform said the main allegations stem from missing USDC balances and confusion over the testnet code.
Recent moves such as tightening internal rules and cleaning up supply are aimed at strengthening trust amid intense scrutiny.
HyperLiquid is facing a backlash amid a series of allegations questioning its solvency, transparency and internal controls. In a detailed public response, the perpetual trading platform said that some of the accusations circulating online are based on inaccurate or misinformed information.
“Hyperliquid is built on on-chain transparency.” The team wrote about each claim one by one.
The response comes as traders across the crypto market demand clearer evidence of reserves and stronger governance from major exchanges.
Why were solvency claims brought to USDC?
One of the most serious accusations is that Hyperliquid was under-collateralized by $362 million. According to Hyperliquid, this conclusion was reached by excluding the native HyperEVM USDC balance.
“Every dollar counts. Author did not count native HyperEVM USDC.” said the platform.
Hyperliquid is aware that if both Arbitrum bridge USDC and native HyperEVM USDC are included, the total balance will be $4.351 billionmatches the user balance on HyperCore. The team emphasized that this validation is completely on-chain and independently checkable.
Testnet features that cause confusion
Another claim suggested that HyperLiquid may retroactively manipulate trading volumes. The platform says it is based on testnet-only code that cannot run on the mainnet.
“That’s exactly what testnet does. Testnet is for testing only.” Hyperliquid added that these features will be used to test complex pricing and volume schemes before deployment.
According to the team, all transactions and volume numbers on the mainnet can be verified by anyone running a node.
No special privileges or hidden controls
HyperLiquid also rejected claims that certain users were exempt from fees or that insiders may have influenced the HYPE airdrop.
“There is no mechanism that distorts fees.” The platform said that fees, trading, and the full distribution of HYPE Genesis are all available on-chain.
Addressing concerns about governance and control, Hyperliquid has clarified that chain freezes will only occur during planned network upgrades, similar to other blockchain hard forks.
Internal rules aimed at strengthening relationships of trust
HyperLiquid pointed to technical rebuttals as well as steps taken to increase confidence. Following reports that a former employee short-sold the token, the platform has banned its employees, contractors, and team members from trading $HYPE to avoid conflicts of interest.
Hyperliquid Reaffirms Strict HYPE Trading Rules Team members from @HyperliquidX said on Discord that all personnel affiliated with Hyperliquid Labs, including employees and contractors, are subject to strict conduct policies regarding $HYPE. These include a complete ban… pic.twitter.com/0GAy6SG9pM
— ME (@MetaEraHK) December 22, 2025
Hyperliquid also announced that the Support Fund token will be around 11% of circulating supply – Officially recognized as permanently baked in through validator consensus, resolving long-standing supply concerns.
Hyperliquid relies heavily on a single message. That means its entire state is on-chain, visible, and verifiable by anyone who wants to see it.
