Recently, the Hyperliquid community has been actively discussing a suspected insider short-selling incident. Here, we summarize the background of the event and the official response.

**Event Details**

The incident originated from community members analyzing on-chain data, discovering that address 0x7ae4c156e542ff63bcb5e34f7808ebc376c41028 has been continuously selling HYPE tokens and opening short positions. Further tracing revealed that the early fund flows, testnet activity records, and historical transfers of this address all point to the Hyperliquid Labs development team. Suddenly, rumors such as "official team dumping" and "insiders profiting from information advantage" spread across the market, shaking the confidence of many investors.

**Official Clarification and Attitude**

In response to these suspicions, the Hyperliquid team issued a clear statement on Discord. First, they reaffirmed strict constraints on all related personnel—including employees and contractors: participation in HYPE token trading must adhere to a clear code of conduct, with a strict ban on derivatives trading and any form of insider trading, maintaining a zero-tolerance policy.

Regarding the short-selling address starting with 0x7ae4, the team confirmed that it belongs to a former employee who has already left the company. This indicates that the core issue is quite simple—the involved individual is no longer part of the team, and their actions do not represent the project's stance. This clarification is helpful in alleviating market sentiment.