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Trove Markets accused of $10M HYPE token dump amid fraud concerns

Written by Brie CarterPublished jan. 18 2026Last Updated jan. 18 2026

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Trove Markets is under scrutiny after allegedly selling more than $10 million worth of HYPE tokens from a project-linked wallet within 24 hours.

The tokens were initially acquired for staking purposes to launch the decentralised exchange under Hyperliquid’s HIP-3 protocol.

On-chain data showed early sales of 6,196 HYPE, valued at about $160,000, before accelerating rapidly.

Reports indicated total liquidations reached 194,273 HYPE tokens, equivalent to roughly $10 million in a single day.

Trove Markets’ founder denied control of the wallet and requested it be shut down, yet selling activity resumed shortly afterwards.

“A few minutes after the founder of @TroveMarkets said that he does not control the wallet, and that he is asking for the wallet to be shut down, it starts selling again, reaching 194,272.79 $HYPE in 24 hours,”

Hyperliquid News said.

The project previously raised $20 million in an ICO to secure the HYPE stake required for permissionless deployment.

Critics said the ICO process was confusing and resulted in losses for some market participants.

Additional concerns included alleged influencer payments, delayed staking, and links to controversial investments.

The HYPE token has fallen around 60% below its ICO price, increasing pressure from early investors.

In response, the Hyperliquid Foundation donated 10,000 HYPE to blockchain investigator ZachXBT to examine the incident.

Trove Markets remains operational with a mainnet launch planned for February 2026, although trust in the project has been shaken.

At the time of reporting, Hyperliquid price was $25.04.