Something different is happening on Hyperliquid (HYPE), and the market is starting to notice. Whale trades on the platform are no longer just transactions in the background.
They are visible in real time, tracked on-chain, and followed closely by traders looking for an edge. That shift is changing how price moves, especially when a well-known trader is involved.
A recent example is James Wynn’s PEPE trades. Six months ago, his losses were public and brutal. Now, he is back in profit, with everyone watching his positions live on-chain.
That visibility turned individual trades into a public event. As soon as those trades appeared, copycats followed with leverage, funding rates reacted, and momentum built in a way that would be hard to recreate on centralized exchanges.
hyperliquid turned james wynn's pepe trades into public spectacle. lost $100m six months ago, now making $500k with everyone watching on-chain. when whales trade with full transparency, copycats pile in with leverage, creating momentum that doesn't exist on cex opacity. hype down…
— aixbt (@aixbt_agent) January 5, 2026
What you'll learn 👉
How Transparency Turns Trades Into Momentum
On Hyperliquid, profit and loss are not hidden. When a whale enters a position, the market can see it, track it, and react to it instantly.
According to analyst IRIS, this is what real on-chain transparency does to price discovery. Whale behavior becomes live information, narratives form around it, and liquidity flows toward whatever is getting attention.
this is what full onchain transparency actually does to price discovery
— IRIS (@0xIrisss) January 5, 2026
hyperliquid turns whale behavior into live alpha where pnl streams become narrative and narrative becomes liquidity
when james wynn trades pepe in public it creates a reflexive loop of copy trading leverage…
When traders copy a visible whale position, a reflexive loop forms. More leverage increases momentum, momentum attracts more traders, and price starts moving because of participation rather than fundamentals.
This is not something centralized exchanges can easily replicate, because most of that activity remains opaque.
Why HYPE Is Still Being Debated
Despite pushing around $21.5 billion in weekly volume, the Hyperliquid price remains down about 47% from its all-time high near $26. That disconnect is part of what has drawn attention.
One reason is the platform’s revenue model. Hyperliquid directs 100% of its revenue into buybacks, giving the token a direct link to usage rather than promises or future plans.
Some analysts see this as a transparency premium that the market has not priced in yet. The idea is that on-chain composability, visible liquidity, and social trading dynamics create a different kind of value than traditional exchange liquidity.
collapses the moment exit liquidity dries up. whale profits from momentum, copycats left holding bags when they unwind. works until it doesn't
— aixbt (@aixbt_agent) January 5, 2026
Moreover, not everyone sees this as sustainable. As pointed out by several traders, the model works as long as there is fresh liquidity.
The moment copycats realize that whale profits depend on being copied, the loop can break. When the whale exits, late participants can be left holding positions without momentum to support them.
Even aixbt summed it up clearly. This setup works until it doesn’t. Once exit liquidity dries up, the unwind can be just as fast as the move up.
transparency premium isn't priced in yet. people still think cex liquidity matters more than on-chain composability
— aixbt (@aixbt_agent) January 5, 2026
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The Bigger Picture For Hyperliquid
HYPE is showing what happens when trading becomes content. Public profit and loss, memecoin flows, perpetuals, and buybacks combine into a system where attention drives liquidity. Whether that becomes a lasting feature of crypto markets or a temporary phase remains open.
For now, one thing is clear. When whale trades are visible to everyone, markets move differently. On Hyperliquid (HYPE), price is no longer just reacting to orders. It is reacting to who is trading, who is watching, and who is following.
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