Crypto Funds Lock Near $150M for Withdrawals as Hype Eases

Hyperliquid’s $HYPE fell to around $58 earlier Wednesday as large staking withdrawals queued up, bringing a sizable supply overhang into the market over the next week. On-chain data compiled by Block Liquidity points to a coordinated set of unstaking and withdrawal requests involving multiple major crypto funds.

According to Block Liquidity’s flow tracking, Multicoin Capital controls a combined $138.78 million worth of staked HYPE, with about 83%—roughly $116 million—showing up as pending withdrawal. Separately, Selini Capital and Galaxy Digital have also queued withdrawals totaling $4.4 million and $29.4 million, respectively. Block Liquidity also flags a Multicoin-linked wallet depositing approximately 167,000 HYPE (about $11.2 million) to Coinbase, suggesting at least some tokens may be routed for potential sale or other handling.

Key takeaways

• Block Liquidity data shows Multicoin has about $116M in HYPE pending withdrawal, forming the bulk of the near-term unlock.
• Across the tracked queues, funds total roughly $150M in HYPE—large versus the token’s relatively thin spot market.
• HYPE spot liquidity has not matched the scale of withdrawals; Block Liquidity recorded $72.8M in HYPE spot volume over ~28 hours.
• Selini’s unstaking appears tied to the shutdown of a HIP-3 CASH perpetuals market, leaving open whether tokens are reallocated or sold.
• Multicoin managing partner Tushar Jain said the unlocked HYPE was not intended for selling, but where the July 28 liquidity ends up remains the key question.

Unstaking queues create a near-term supply overhang

The immediate pressure on HYPE came from the scale of withdrawals initiated by market participants. Pending unlocks are expected to be processed over roughly five to seven days, which effectively places a large amount of newly available HYPE into the liquid ecosystem on a compressed timeline.

While HYPE perpetuals volumes are substantially larger—reported around $400M daily for perps—the spot market is materially smaller. Block Liquidity recorded just $72.8M of HYPE spot volume across approximately 28 hours leading up to Wednesday morning, with 1,463 unique buyers and 982 sellers. Wintermute stood out as the largest net buyer at over $9M, while the biggest net seller reduced exposure by about $5.2M.

That imbalance—withdrawal queues that can approach $150M versus daily spot turnover that is far lower—helps explain why traders reacted quickly when the unlocks became visible. Even if not all tokens are sold, the market often prices in uncertainty around absorption capacity, especially when spot liquidity is thin relative to the potential supply.

Whether tokens get sold is unclear

The main variable for investors and traders is straightforward: do these withdrawals translate into market selling, or do they get redeployed elsewhere within Hyperliquid’s ecosystem?

For Selini Capital, the unstaking appears connected to the shutdown of HIP-3 CASH perpetuals markets run under the HIP-3 framework. The withdrawal activity is associated with Selini’s unstaking flow (see Selini-linked address on Hyperevmscan). The broader context points to DreamCash posting that relevant markets struggled to maintain liquidity, particularly as USDC became more entrenched in Hyperliquid’s trading environment.

Under HIP-3 deployments, a builder-deployed perpetual requires staking 500,000 HYPE as a slashable security bond. That bond is intended to be refunded when a market goes defunct, turning the unlock into something closer to a “release of collateral” than a direct liquidity event. That said, collateral can still be sold—potentially through OTC channels—depending on the fund’s strategy and risk posture.

As a result, the market’s near-term direction depends on what happens after the July 28 unlock and subsequent processing window. HYPE had dropped about 11% over the past week at the time of reporting, and even after recovering modestly from the day’s lows, it had not yet returned to earlier highs.

Multicoin’s role: potential redeployment rather than liquidation

While Selini’s unlock is tied to closing a specific HIP-3 market, Multicoin’s pending withdrawal could represent either liquidation or a reallocation into a new deployment. The distinction matters: redeployments into new perps can keep tokens within the ecosystem, while sales put downward pressure on both spot and potentially perp pricing if the sell pressure is large enough.

Multicoin was also recently involved in a Hyperliquid-linked venture bet. Last week, the firm led a $1.75 million seed round into Trasia, described as an Asia-focused, non-custodial trading platform aiming to launch perpetuals for Asian equities. Managing partner Tushar Jain said in an X post that Trasia is targeting “net new users” unfamiliar with Hyperliquid.

In a later Wednesday update on X, Jain also claimed that the HYPE being unstaked was not intended for selling. That statement directly addresses the question traders are asking: whether the visible withdrawal queue turns into a dumping event or becomes collateral movement toward a new deployment.

Investors will likely watch the July 28 unlock closely to see where the assets go next. If HYPE is redeployed into new HIP-3 markets or other ecosystem uses, the market may stabilize once immediate selling risk fades. If, however, the tokens are moved to venues in a way that suggests liquidation, the overhang could persist longer than the processing window itself.

Market watch: follow the flow after the unlock window

For now, HYPE’s near-term price action appears less about long-term demand and more about supply mechanics: how quickly pending withdrawals convert into spot selling versus redeployment. The decisive signal will be the post-unlock routing—whether tokens flow into new perpetual deployments or toward exchanges—particularly in the days surrounding the July 28 release.