Jeffrey Huang, also known as "Machi Big Brother," a Taiwanese music celebrity and notable digital asset investor, has sold his Hyperliquid (HYPE) holdings, incurring a $4.45 million loss. This decision comes amid growing concerns about the upcoming vesting schedule for the HYPE token and increasing competition for Hyperliquid from rival decentralized exchanges (DEXs).
Huang sold $25.8 million worth of HYPE tokens after holding them for several weeks. Pseudonymous analyst MLM shared blockchain data on X, noting that Huang also forfeited over $19 million in unrealized profit in the week prior to the sale. Despite these losses, Huang maintains substantial positions in Ether (ETH) and Pump.fun (PUMP).
The sale occurred after a significant withdrawal of $122 million in HYPE tokens, which signaled profit-taking and amplified concerns about the token's ability to handle upcoming supply pressure. BitMEX co-founder Arthur Hayes' family office fund, Maelstrom, had previously warned about the approaching HYPE token unlocks scheduled to begin on November 29, 2025. Maelstrom researcher Lukas Ruppert pointed out that the vesting schedule would distribute $11.9 billion worth of HYPE tokens to team members, and current buybacks could only absorb about 17% of the monthly supply, potentially leaving a $410 million overhang. Hayes himself reportedly sold his HYPE tokens to fund the deposit for a new Ferrari.
Hyperliquid's market share in the perpetual futures market has declined as new competitors emerge. The platform's share was around 33% as of late September 2025. Several new DEXs are challenging Hyperliquid's position, including Aster, SunPerp, and EdgeX. Aster, backed by YZi Labs (formerly Binance Labs), saw its token price surge by 1,650% on its first day of trading, with volumes exceeding $345 million. Former Binance CEO Changpeng Zhao ("CZ") has also shown support for ASTER, further fueling its rise as a competitor. SunPerp, supported by TRON and Justin Sun, launched with a promise of rapid buybacks for SUN tokens.
Hyperliquid gained prominence for its speed, efficiency, and permissionless nature, attracting high-profile whales and U.S.-based traders. However, the emergence of competitors offering innovative features and incentives is intensifying the competition in the decentralized derivatives market. For example, Avantis Finance on the Base network employs sophisticated risk-management architecture for liquidity providers, using hedging mechanisms to maintain a delta-neutral AVLP pool.
Machi Big Brother's trading activity is closely monitored within the crypto community. He is known for his aggressive strategies and substantial positions in various tokens. While he has achieved significant profits in the past, including a reported $2.1 million in one week trading ETH and HYPE on Hyperliquid, he has also experienced substantial losses. In August 2025, his long positions in ETH, BTC, HYPE, and PUMP were down nearly $10 million amid a market downturn.
The increasing competition in the decentralized derivatives market reflects a broader trend of shifting derivatives trading to decentralized, non-custodial platforms. While centralized exchanges like CME, Binance, and Bybit still dominate, DEXs like Hyperliquid and its rivals aim to attract institutional and retail interest through transparency, lower fees, and innovation.
