Hyperliquid Labs recently tightened its insider trading policies with a hard line stance. Staff members are now prohibited from trading $HYPE derivatives, implementing what the team calls a zero-tolerance approach to prevent information asymmetry exploitation.

Notably, the 0x7ae4 address flagged in recent compliance reviews belonged to a former employee who departed during Q1 2024. This discovery prompted the lab's broader review of its governance framework.

The move reflects growing industry awareness around derivatives trading risks and the need for stricter barriers between team members and market participation. For a platform focused on decentralized derivatives, maintaining clean market integrity through employee trading restrictions has become standard practice among leading protocols.