Shorting $HYPE and losing money, the entire timeline was contaminated by HYPE.

Because the understanding of HYPE has not been continuously updated, it remains at a Pepr DEX level, completely unaware of things like HIP-3, and combined with recent policy impacts, it has led to a strong FOMO sentiment in a short period, causing a short squeeze.
Here, I’ll also give a brief science popularization: what is HIP-3?
Previously, what could be traded on Hyperliquid was basically decided by the official. After HIP-3, anyone can create perpetual contract markets on Hyperliquid. You can think of it as, previously, it was about trading tokens on an exchange; now, everyone can open a market.
Hyperliquid’s earnings are no longer just from its own trading fees, but from the trading fees of the entire ecosystem. In the future, whether it’s Meme, AI, long-tail assets, or various new narratives, as long as they run within the HIP-3 system, they will contribute revenue to Hyperliquid.
And these revenues will eventually flow into the Assistance Fund to buy back HYPE. So many people now buying HYPE are no longer just looking at how much the exchange itself is worth, but betting on whether Hyperliquid can become an on-chain financial infrastructure.
This is also why recently HYPE’s valuation has been rising, but there are still people willing to buy.
Because if in the future spot, perpetual, Launchpad, stablecoins, prediction markets, and other things all run on Hyperliquid, then the valuation logic of HYPE will no longer be just a DEX token.
But this does not mean that $HYPE can spiral upwards endlessly; faced with huge market cap pressure, CME and the Intercontinental Exchange ICE (the parent company of the New York Stock Exchange) are jointly pressuring the CFTC to conduct an investigation, citing concerns that its anonymous trading environment could be exploited by sanctioned entities and may distort global oil price benchmarks.
Written on a morning after a good sleep following a liquidation.