Hyperliquid’s $14.3 Billion Milestone and HYPE’s All-Time High
Current market data confirms that Hyperliquid’s native token HYPE reached an all-time high as open interest surged to $14.3B. Open interest is measured as the total USD notional value of all open positions on Hyperliquid at a point in time. It is utilized as a leading indicator of speculative activity and capital at risk within the perpetual swap markets. By aggregating the outstanding long and short positions across all active markets, the total liquidity and leverage deployed on the platform is reflected.
According to recent technical analysis by SJ Trader 5 on Binance Square, HYPE is around $86–88, with price testing the important $90 resistance. Current technical analysis shows the larger trend is still bullish, with support around $84–85 and RSI near the upper end of the neutral/bullish range. Furthermore, Brave New Coin reports that a new ATH near $90 and whale accumulation strengthen a $100 breakout outlook .
Surviving the $820M Token Unlock and the Deflationary Burn Economy
The market has recently absorbed massive supply shifts. A 9.92M HYPE unlock worth roughly $820M occurred around September 6, so volatility can remain high. Despite this, HYPE has remained aggressive and bullish.
One reason for this resilience is the protocol’s aggressive buyback and burn mechanics. CoinGecko reports that the protocol recently burned $1.32 million. Zooming out, Phemex data reveals that Hyperliquid has burned $1.3 billion of HYPE since December 2024 . Institutional interest is heavily backing this deflationary model; for example, on August 11, an institution purchased about $11 million in HYPE, and the protocol burned roughly $1 million in tokens the same day .
The Legacy of the 10/10 Crash: Why Traders Trust Hyperliquid
To understand why capital is aggressively moving to Hyperliquid, one must look back at the defining market event of late 2025: the October 10 (10/10) crypto crash.
The October 10 (10/10) crypto crash was a fast, mechanical unwind of record leverage that turned a risk-off Friday into a derivatives firestorm . Within 24 hours, forced liquidations topped $19 billion, erasing positions across majors and alts simultaneously . Market mechanics were pushed beyond sustainable failure points as over 1.6 million trading accounts were decimated within a single 24-hour window . As documented by DropsTab, a sudden tariff shock sparked one of crypto’s largest liquidation events ever . Spot prices moved like a flash-crash: Bitcoin fell about 14.5% to roughly $104,783, Ether slid near 12% to around $3,436, and Solana briefly lost more than 40% .
During the crash, centralized infrastructure bent or broke. For roughly 70 minutes, the world’s largest exchange fought to stay functional as volume surged past historical records . The breaking point came when Binance’s Unified Account system mispriced collateral assets like USDe, BNSOL, and WBETH, all slipping off peg . Liquidation thresholds linked to Binance’s own unstable spot data triggered an avalanche of forced sells — a full-blown liquidation cascade . As one observer, @hosseeb, noted: “USDe didn’t depeg from the dollar — Binance did” . API freezes and halted arbitrage turned a simple price gap into what looked like a 30% collapse .
As Binance stumbled, Hyperliquid seized the spotlight . Co-founder Jeff Yan turned the chaos into a showcase for decentralized resilience . “We didn’t blink,” he said — and the numbers backed him up: 100% uptime during peak volatility . Hyperliquid turned volatility into validation; Binance turned it into a PR crisis . The October 10 crash was a stress test for market structure itself, proving that trust now splits along lines of transparency: one model shields users with refunds; the other lets code decide outcomes .
Technical Analysis: Evaluating Open Interest Risks and Support Levels
While the momentum is strong, CoinGlass notes that an all-time high in Open Interest indicates that the amount of capital participating in HYPE derivatives trading is at a historical peak, but it does not necessarily mean that the market has topped . In trending markets, Open Interest may continue to rise alongside price . The situation that truly warrants caution is when Open Interest keeps increasing while price momentum starts to stall .
Trading volume reflects how actively futures are being traded, while HYPE Open Interest focuses on whether futures positions are actually being retained in the market . Moderate trading volume combined with a steady rise in Open Interest often suggests that new leveraged positions are being gradually built .
If HYPE fails to maintain its record levels, the first support area sits considerably below the current price. Brave New Coin outlines that the 5-day, 10-day, and 20-day moving averages are clustered between roughly $86.5 and $88.5, creating a short-term support band . A decline into this region would therefore represent a normal retracement within the existing uptrend rather than an immediate structural breakdown . Below that, the 50-day moving average near $85.4 and the 100-day average around $84.5 become increasingly important . A deeper decline toward the 200-day average near $83.6 would represent a more meaningful deterioration in the short-term structure . Ultimately, Hyperliquid can remain in a broader uptrend while experiencing a sizable pullback from an overbought reading .
Sources: CoinGecko, Token Terminal, Binance Square (SJ Trader 5), Brave New Coin, Phemex, BusinessDay, CoinGlass, Medium (DropsTab x Drops Bot), and Datawallet.
