TL;DR: The Hyperliquid Policy Center supports the SEC’s proposed crypto framework but says five changes are needed to make the rules workable for token developers and markets.
The Hyperliquid Policy Center has welcomed the US Securities and Exchange Commission‘s attempt to clarify how securities law applies to crypto assets, while warning that details around distributions and trading could still create unnecessary barriers.
In a comment published October 19, the group urged the regulator to revise its proposed Regulation Crypto Assets framework in five areas. Its concerns include how administrative steps in token airdrops are treated, how tokens can trade after an exempt distribution, and whether a safe harbour offers clear enough protection once a project has matured.
The centre also wants clearer rules for token buybacks and a consistent approach to the interaction between federal exemptions and state securities requirements.
The proposals reflect a long-running problem for cryptocurrency developers. A network token may begin life inside a fundraising arrangement, yet eventually circulate in a system where thousands of participants trade and use it without dealing directly with its original issuer.
Drawing a line between those stages has been difficult under decades-old securities tests. The SEC’s proposal is intended to offer more predictable treatment, but the consultation process shows that industry participants still disagree about where the boundaries should fall.
The advocacy group’s submission is not a regulatory decision. It is one contribution to a rulemaking process whose final outcome will depend on the commission’s response to the evidence and objections it receives.
Written by the News Desk and edited by Samuel Rae.
TL;DR: On-chain trading records indicate that a large Hyperliquid trader rebuilt an Ethereum short worth roughly $16 million after suffering around $469,000 in losses.
Losing nearly half a million dollars on a leveraged Ethereum trade would be enough to make most investors reassess their position. One account tracked on Hyperliquid appears to have done the opposite.
A review of public trading activity reported on October 19 describes a series of forced closures after an overnight ETH rebound. The trader reportedly realised approximately $469,000 in losses before fees, with close to $19.8 million in short exposure closed across multiple fills.
Later that day, the account began rebuilding its bearish position. By an afternoon snapshot, the trader was short roughly 6,789 ETH, worth about $16.2 million at prevailing prices, with leverage set at 25 times.
Those are observations about a particular account’s recorded trading, not proof of who controls it or why the person behind it returned to the market. A large short position can reflect outright speculation, but it can also serve as a hedge against exposure held elsewhere.
The episode illustrates how unforgiving highly leveraged perpetual futures can be. Market moves that look ordinary to spot holders can trigger forced liquidations when collateral buffers are thin.
For traders watching the wallet, the important numbers are less about the drama of a fresh bet and more about liquidation exposure, funding costs and whether the account can withstand another move against it.
Written by the News Desk and edited by Samuel Rae.
Bitcoin Magazine
Liquid Network Announces Final Stages of Recovery Following Massive Hack
The Liquid Network on Tuesday said that things were up and running again, over one month after hackers stole 4,000 bitcoin, worth about $320 million at the time, from the network’s federation wallet before returning most of it in a “white hat” operation.
Writing in a blog post, the Liquid Network said that it was entering “the final stages of recovery with enhanced security.”
Hackers in September stole 4,000 bitcoins from the federation wallet that backs the Blockstream sidechain. Blockstream was able to negotiate to get back most of the funds.
LBTC:BTC swaps full service again. swap @liquid_btc to/from mainchain BTC on @side_swap. swap @liquid_btc to/from lightning on @AquaBitcoin. https://t.co/csslFIIRAE
— Adam Back (@adam3us) October 20, 2026
“The final phase of restoration involves reestablishing the network’s full 1:1 bitcoin backing, followed by the controlled reactivation of Federation peg-outs for authorized PAK key holders,” the Liquid blog post read.
“The Federation, Blockstream, and independent security experts have made substantial progress toward this objective, with the necessary technical infrastructure and safeguards now in place.”
The post added that it had introduced phased swaps again. Blockstream CEO Adam Back wrote on X on Tuesday that swaps were working again.
Liquid is a layer-2 created by Blockstream that allows users to quickly move assets backed 1:1 with bitcoin. People can swap stablecoins for bitcoin and bitcoin on the Lightning Network on apps that support the Liquid Network.
Hackers were able to get 4,000 bitcoins by exploiting an inflation bug on the Liquid sidechain to create over 4,000 LBTC — a token supposedly backed by bitcoin — that did not exist before and cash them out for real on-chain BTC.
The hackers claimed to be white hat hackers who then had an exchange with Blockstream via messages written into Bitcoin blocks. Though critics argue they were not so ‘white’ since they kept 15% of the stolen funds, worth millions.
In one message, the hackers slammed Blockstream as “delusional, greedy, and arrogant,” and threatened to reveal all of Blockstream’s encrypted messages in the exchange unless the company paid the hackers 10% of the bitcoins as an official bounty.
“You SHALL pay 10% using your own money as bug bounty or you will cause all your holders a 15% loss for your irresponsibility and stinginess,” the message read.
The hackers are still holding onto around 600 bitcoins — or 15% of the total funds — worth close to $50 million at today’s prices as per the latest public knowledge.
It is not clear if Blockstream reached a settlement with the hackers in private.
This post Liquid Network Announces Final Stages of Recovery Following Massive Hack first appeared on Bitcoin Magazine and is written by Mathew Di Salvo.
TL;DR: The Hyperliquid Policy Center supports the SEC’s proposed crypto framework but says five changes are needed to make the rules workable for token developers and markets.
The Hyperliquid Policy Center has welcomed the US Securities and Exchange Commission‘s attempt to clarify how securities law applies to crypto assets, while warning that details around distributions and trading could still create unnecessary barriers.
In a comment published October 19, the group urged the regulator to revise its proposed Regulation Crypto Assets framework in five areas. Its concerns include how administrative steps in token airdrops are treated, how tokens can trade after an exempt distribution, and whether a safe harbour offers clear enough protection once a project has matured.
The centre also wants clearer rules for token buybacks and a consistent approach to the interaction between federal exemptions and state securities requirements.
The proposals reflect a long-running problem for cryptocurrency developers. A network token may begin life inside a fundraising arrangement, yet eventually circulate in a system where thousands of participants trade and use it without dealing directly with its original issuer.
Drawing a line between those stages has been difficult under decades-old securities tests. The SEC’s proposal is intended to offer more predictable treatment, but the consultation process shows that industry participants still disagree about where the boundaries should fall.
The advocacy group’s submission is not a regulatory decision. It is one contribution to a rulemaking process whose final outcome will depend on the commission’s response to the evidence and objections it receives.
Written by the News Desk and edited by Samuel Rae.
TL;DR: On-chain trading records indicate that a large Hyperliquid trader rebuilt an Ethereum short worth roughly $16 million after suffering around $469,000 in losses.
Losing nearly half a million dollars on a leveraged Ethereum trade would be enough to make most investors reassess their position. One account tracked on Hyperliquid appears to have done the opposite.
A review of public trading activity reported on October 19 describes a series of forced closures after an overnight ETH rebound. The trader reportedly realised approximately $469,000 in losses before fees, with close to $19.8 million in short exposure closed across multiple fills.
Later that day, the account began rebuilding its bearish position. By an afternoon snapshot, the trader was short roughly 6,789 ETH, worth about $16.2 million at prevailing prices, with leverage set at 25 times.
Those are observations about a particular account’s recorded trading, not proof of who controls it or why the person behind it returned to the market. A large short position can reflect outright speculation, but it can also serve as a hedge against exposure held elsewhere.
The episode illustrates how unforgiving highly leveraged perpetual futures can be. Market moves that look ordinary to spot holders can trigger forced liquidations when collateral buffers are thin.
For traders watching the wallet, the important numbers are less about the drama of a fresh bet and more about liquidation exposure, funding costs and whether the account can withstand another move against it.
Written by the News Desk and edited by Samuel Rae.
**ID:** B25-02
**Site:** Bitcoinist
**Status:** READY
**Author:** Bitcoinist Editorial Team
**Focus Keyword:** Hyperliquid
**Image Keyword:** Exchange
**Category:** Altcoins
**Tags:** Binance, Hyperliquid, HYPE, Spot Trading, Exchange
**Primary Source:** https://www.binance.com/en/support/announcement/
Hyperliquid built much of its reputation without depending on traditional centralized exchange infrastructure.
Its perpetual trading platform and native chain created a large user base directly onchain, while HYPE became central to the ecosystem’s governance and economics.
A Binance spot listing changes the distribution picture.
Users no longer need to interact directly with Hyperliquid or another existing venue to gain spot exposure to the token.
Binance says the listing fee was zero BNB.
Withdrawals are expected to open at 11:00 UTC on September 25.
The TRY trading pair is restricted to users with the relevant Binance TR verification.
HYPE has been given Binance’s Seed Tag.
That label is applied to projects the exchange considers innovative but potentially more volatile or risky than established assets.
Users wanting to trade Seed Tag tokens must periodically pass Binance’s risk quizzes and accept additional terms.
That does not mean Binance is making a judgment that HYPE is unsafe.
It is a reminder that exchange access and investment risk are two different things.
The listing is still strategically significant for Hyperliquid.
The protocol has spent years proving that a decentralized exchange can generate substantial trading activity without simply recreating a centralized venue onchain.
Now its native token is getting distribution through exactly the kind of centralized exchange that Hyperliquid competes with for traders.
There is a certain irony in that.
But from a liquidity perspective, the logic is straightforward.
More venues mean more ways for traders to enter and exit HYPE positions.
Whether the listing changes the long-term economics of Hyperliquid is another question.
It certainly expands the number of people who can trade the token without ever touching Hyperliquid itself.
*This article was written by the News Desk and edited by [Samuel Rae](https://bitcoinist.com/author/samuelrae/).*
Lion Group Holding has disclosed a corporate treasury position of approximately 195,000 HYPE tokens, adding another public company to the growing list of firms holding crypto assets beyond Bitcoin and Ethereum.
The position was disclosed in a September 21 Form 6-K.
Hyperliquid has grown into one of the most closely watched decentralized derivatives platforms, and HYPE has increasingly become part of the market’s broader infrastructure trade.
Lion Group’s holding brings that token into a different context.
Instead of a trading position held by a crypto-native fund or individual wallet, the approximately 195,000 HYPE tokens sit inside a listed company’s treasury strategy.
That creates a direct link between Hyperliquid’s ecosystem value and Lion Group’s balance sheet.
The disclosure should not be mixed with Hyperliquid trading-volume data.
Lion Group’s 195,000 HYPE figure is an asset holding.
It does not represent user deposits, protocol TVL or daily derivatives volume.
That distinction matters because all of those numbers can move independently.
The broader trend is still notable.
As listed companies look for differentiated crypto exposure, some are moving beyond the established Bitcoin-treasury model and adding ecosystem tokens tied to specific networks or protocols.
Lion Group’s HYPE position is one of the clearer examples of that shift.
This article was written by the News Desk and edited by Samuel Rae.
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