On-chain perpetual futures for Nvidia (NASDAQ: NVDA) point to another drop at market open on November 9. On HIP-3, NVDA is aggressively shorted, while going through more than a day of concentrated selling volume.
Nvidia (NVDA) rose among the most aggressively traded perpetual futures, in response to the news of founder Jensen Huang’s affair with Alice Huang, now investigated for spying on behalf of China.
While markets were closed, perpetual futures pointed to the potential development on Nasdaq as Monday trading started. NVDA traded at $186.64 during pre-market hours, down from its range above $200. NVDA now faces double pressure from the immediate scandal, as well as the general deflation of AI and semiconductor stocks.
The perpetual futures trading over the weekend was watched as a signal on whether Nasdaq would have a further reaction to the potential of ousting Huang as CEO of Nvidia. For now, Polymarket bets only give the event a 24% probability by the end of 2026.
Swimmer Finance, one of the decentralized venues for trading tokenized equities, announced it would continue listing NVDA, despite the recent outsized price volatility.
NVDA also expects to react to the November 11 Congress hearing, followed by Q3 earnings on November 17 and another closed-door Congress hearing on November 18.
Hyperliquid reaction predicts further price drop
On Hyperliquid, the xyz:NVDA perpetual futures against USDC brought the price down to the $178 range, with local lows at $175.
The ticker saw its most active selling volume for the past month. After bottoming at $175, NVDA bounced with returning buying volumes.
As of November 9, the NVDA perpetual futures had around $128M in open interest, relatively small compared to other equity or commodity contracts. Despite this, the ticker was among the top 10 most traded contracts, standing just behind SanDisk (SNDK) in open interest.
Perpetual futures on HIP-3 used the Pyth oracle pricing and immediately increased trading volumes. The usual range of $3.1M per hour immediately spiked, with $115M an hour traded immediately after the investigation news on Jensen Huang. Perpetual futures allowed for NVDA price discovery even over the weekend, when official markets were still closed.
Based on HIP-3 trading, NVDA may see further turbulence. As of November 9, the NVDA price is around 6% lower compared to one year ago, entirely erasing the previous peak in semiconductor stock activity.
Whale opens aggressive short on Hyperliquid
Following the news of Jensen Huang’s affair, a whale immediately shorted NVDA with 10X leverage. As of November 9, the whale still retained the position, with over $128K in unrealized gains, while funding fees switched positive.
The same whale shorted BTC with 30X leverage, showing even more confidence in further crypto market weakness. The position pays a small negative fee, but already carries over $200K in unrealized gains.
An even bigger whale position is valued at over $9.3M, with an unrealized gain of $1.23M. Ten out of the total of 19 whales on Hyperliquid are going short on NVDA, while long positions are currently carrying unrealized losses and are generally much smaller in value.
The recent NVDA price moves also go beyond the available tokenized or perpetual futures versions. The NVDA fluctuations also affected leveraged positions and general sentiment on the crypto market, leading to another round of mass liquidations.
As NVDA crashed, BTC responded by going to a local low of $73,600, extending the market’s general negative sentiment. As Cryptopolitan reported, the recent crypto sentiment also takes into account potential investigations against major players. After the US Democratic Party flipped the midterms with a Senate majority, the door opened to increased scrutiny for Binance, Tether, and World Liberty Financial.
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