🔥 Forced sell or final shakeout? NMTD capitulates on HYPE

One of the most dramatic stories of December on Hyperliquid.

🗣️ NMTD is an OG holder and a public HYPE maximalist. For months he openly backed the token, broke down Assistance Fund buybacks, and argued HYPE could grow into a top 5 crypto.

What he did:

➡️ Pledged almost 1,000,000 $HYPE worth about $27M on HyperLend, HypurrFi, and Felix

➡️ Borrowed BTC, ETH, and SOL against it

➡️ Added leverage on perps in the $36–42 range

It was a high risk bet that HYPE would outperform the rest of the market.

❌ The market disagreed.

When the health factor dropped to 1.05, the liquidation buffer shrank to about 5%. One sharp move lower and the position was gone.

📉 To survive, NMTD sold 312,000 HYPE in just 4 hours at an average price of $27.15. Roughly $8.5M. The proceeds went straight into debt repayment and saving the remaining position.

He survived. But lost around 25–33% of his original HYPE stack.

❓ The takeaway

Capitulation by large, highly convicted holders often lines up with local bottoms. When even the strongest hands are forced to sell, sellers start to run out.

$27 is the level where one of HYPE’s biggest believers was forced to tap out.

Is this the bottom? Maybe.

Or just a pause before more downside. The market does not owe anyone a clean narrative.

But if you were looking for a moment where pain peaked, this is one of them.