Hyperliquid Fires Back at Solvency and Integrity Claims, Cites Onchain Proof

Hyperliquid is pushing back after a wave of claims questioned its solvency, transparency, and internal controls. In a detailed public response, the perpetuals trading platform said several accusations circulating online were based on incorrect or misunderstood information.

“Hyperliquid is built on a foundation of onchain transparency,” the team wrote, addressing the claims one by one.

The response comes as traders across the crypto market demand clearer proof of reserves and stronger governance from major exchanges.

Why the Solvency Claim Came Down to USDC

One of the most serious accusations claimed Hyperliquid was undercollateralized by $362 million. According to Hyperliquid, this conclusion came from leaving out native HyperEVM USDC balances.

“Every dollar is accounted for; the author failed to count native HyperEVM USDC,” the platform stated.

Hyperliquid explained that when both the Arbitrum bridge USDC and native HyperEVM USDC are included, total balances amount to $4.351 billion, matching user balances on HyperCore. The team emphasized that this verification is fully onchain and independently checkable.

Testnet Functions Sparked Confusion

Another claim suggested Hyperliquid could retroactively manipulate trading volume. The platform said this was based on testnet-only code that cannot be executed on mainnet.

“Testnet functions are exactly that – testnet only for testing,” Hyperliquid said, adding that these features are used to test complex fee and volume mechanics before deployment.

According to the team, every trade and volume figure on mainnet can be verified by anyone running a node.

No Special Privileges or Hidden Controls

Hyperliquid also rejected claims that certain users receive fee exemptions or that insiders could influence the HYPE airdrop.

“There are no such mechanisms to distort fees,” the platform stated, noting that fees, trades, and the full HYPE genesis distribution are all available onchain.

Addressing concerns around governance and control, Hyperliquid clarified that chain freezes only occur during planned network upgrades, similar to hard forks on other blockchains.

Internal Rules Aim to Strengthen Trust

Alongside its technical rebuttal, Hyperliquid pointed to steps taken to improve trust. The platform has banned employees, contractors, and team members from trading $HYPE to avoid conflicts of interest, following reports of a former employee shorting the token.

Hyperliquid also confirmed that Assistance Fund tokens – around 11% of circulating supply – have been formally recognized as permanently burned through validator consensus, removing long-standing supply concerns.

Hyperliquid is leaning heavily on one message: its entire state is onchain, visible, and verifiable by anyone who wants to look.