Altcoins News

Story: Hyperliquid’s 500% Fee Wreaks Havoc on Oil Short-Sellers as Prices Surge to $100

By James Thorp

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How Hyperliquid's Funding Rates Actually Work. The 500% figure isn't a fee the exchange charges directly. It's algorithmically generated.

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ICE and CME Raise Red Flags in Washington. US exchanges aren't staying quiet. ICE and CME have both gone to regulators in Washington to push…

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Geopolitics Driving the Underlying Move. The conflict in Iran, which started in February, has made things worse on the supply side.

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Hyperliquid is charging short-sellers a brutal 500% annualized fee on oil derivatives. Long traders collect those payouts every hour, turning a crowded short market into a pretty…

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The numbers are hard to ignore. Oil prices have jumped 6% in a single day and are up 24% over the past month, driven largely by tensions in key shipping routes — specifically the…

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The 500% figure isn't a fee the exchange charges directly. It's algorithmically generated. Hyperliquid's system uses oracle price data to keep its perpetual contracts aligned…

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That kind of imbalance doesn't usually last long. Day traders on the short side are trying to minimize the damage by keeping positions open for only brief windows, avoiding the…

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Part of the weirdness this week comes from timing. WTI oil is rolling from the V6 to the X6 contract, and Brent is rolling from X6 to Z6 — a transition running between September…

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US exchanges aren't staying quiet. ICE and CME have both gone to regulators in Washington to push for scrutiny of Hyperliquid's operations.

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No official regulatory action has been disclosed yet. Unclear whether anything formal is coming, or when.

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Read also: Zoomex Surges to 3 Million Users Amid Job Surprises and Oil Price Turmoil

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Hyperliquid lets traders use up to 20x leverage on Brent oil positions. At that level, a small move against you wipes out a big chunk of capital fast.

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And yet traders keep coming. The exchange has seen heightened activity and heavily one-sided positioning this week, which is basically what produces the funding rate anomaly in…

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The conflict in Iran, which started in February, has made things worse on the supply side. Millions of barrels move through the affected regions daily, and instability there…

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The futures roll runs through September 14. Until that window closes, the unusual dynamics probably aren't going away.

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