Hyperliquid Labs begins $330M HYPE OTC distribution, transfers half to five buyers

Hyperliquid Labs has finished unstaking 3.75 million HYPE tokens, valued at approximately $330 million. Half of that pile has already landed in the wallets of five over-the-counter buyers.

The unstaking wrapped up on October 7, 2026. It is the largest token distribution the team has made in HYPE’s history, and it is not particularly close.

The details: one big release, split five ways

The process began on September 30, when the team kicked off a seven-day unbonding period. Think of unbonding as a cooling-off window. Staked tokens cannot move instantly, so holders wait out a set period before the coins become transferable.

Once that week passed, 1.875 million HYPE went to five OTC buyer wallets. The split was perfectly even, with each wallet receiving 375,000 tokens.

The other half of the 3.75 million tokens has not yet followed. That leaves the distribution partly complete, with the remaining tokens still waiting for a next move.

Co-founder iliensinc confirmed that the transaction is tied to an OTC agreement with an undisclosed institutional counterparty. According to the team, the tokens are part of a firm deal and will not enter public markets.

The full 3.75 million HYPE forms part of the October distribution for team allocations. Prior vesting schedules had listed a nominal figure of 9.9 million HYPE for that month. The amount actually unstaked came in well below that headline number.

How this compares to past releases

For context, the team’s previous monthly distributions typically ranged between 140,000 and 534,000 HYPE. This one is approximately 8.65 times larger than those earlier releases.

Measured against the broader market, the unstaked amount equals roughly 1.5% of HYPE’s circulating supply.

What happened on-chain afterward

On-chain activity following the distribution showed some of the tokens being restaked or aggregated.

The initial market response was positive, and HYPE’s price rose on the news.

What this means for HYPE holders

The OTC structure solves one problem neatly. Large team unlocks often spook markets because holders fear a wave of selling. Routing the tokens to institutional buyers under a firm agreement removes that immediate pressure from exchange order books.

The identities of the buyers have not been disclosed, and neither have the terms of the deal. Investors cannot see lockup conditions, pricing, or any restrictions on resale.

The gap between the nominal 9.9 million HYPE listed for October in prior vesting schedules and the 3.75 million actually unstaked is worth tracking. Holders who budgeted for the larger figure may see this as a lighter month than expected.

Disclosure: This article was edited by Vivian Nguyen. For more information on how we create and review content, see our Editorial Policy.