PURR Bull Sees SpaceX IPO Driving A Shift Toward Stock-Linked Trading On Hyperliquid Despite Recent Flash Crash

• Capital Flows said Hyperliquid's HIP-3 trading volume is shifting from commodities markets into stock-linked contracts ahead of SpaceX's anticipated public listing.
• The trader argued the rotation helps explain why Hyperliquid has held up better than Bitcoin.
• The comments came days after Hyperliquid's SpaceX-linked perpetual contract plunged about 45% in 30 minutes.

Just days after a SpaceX-linked contract on Hyperliquid (HYPE) plunged 45% in half hour, one of the platform's most followed bulls is doubling down. Capital Flows, a widely followed crypto research firm, argued on Tuesday that trading activity on Hyperliquid is moving from commodities into stock-linked markets ahead of SpaceX's (SPCX) expected public listing.

"We are already seeing HIP-3 volume shift away from crude and into stocks," the trader wrote on X. "This is one of the reasons why Hyperliquid isn't falling with Bitcoin (BTC)." HIP-3 is Hyperliquid's framework for launching custom perpetual futures markets, allowing traders to speculate on assets beyond standard crypto pairs. In this case, the focus is on SpaceX-linked exposure through a synthetic market rather than direct ownership of SpaceX shares.

Capital Flows described Hyperliquid as an "adaptive system" that is "seeking alpha," saying the result is "uncorrelated returns." 

HYPE’s ‘Winner’ Moment

On Tuesday, the analyst positioned Hyperliquid as a high-beta, "winner-take-all" disruptor where risk-seeking capital is concentrating on a livestream, citing it alongside perpetuals as part of the speculative end of the risk curve and another grouping it with AI as a genuine "revolutionary change" theme, arguing that Hyperliquid is reshaping financial business models in a way traditional finance hasn't seen in decades. 

Hyperliquid’s price was down by 0.9% during the past 24 hours. On Stocktwits, the retail sentiment around HYPE remained in the ‘extremely bullish’ zone, while chatter around it stayed in the ‘extremely high’ levels over the past day.

They said the next significant buying opportunity would be next quarter or when tech and AI cool out during the summer or into October–November. Hyperliquid Strategies Inc. (PURR) holds around 7% of the HYPE token’s supply.

PURR In Short Squeeze?

The trader added that Hyperliquid Strategies was their largest position, citing "fundamental backing" for the squeeze taking place. Previously, the analyst predicted that the stock would undergo a 2021 GameStop (GME)-style gamma squeeze over the next two months. Gammas occur when rapid call option buying prompts market makers to aggressively acquire the underlying stock, triggering an upward spiral.

PURR stock was up over 1% in pre-market trading. On Stocktwits, the retail sentiment around PURR remained in the ‘extremely bullish’ zone, while chatter around it stayed in the ‘high’ levels over the past day. 

SpaceX Flash Crash Draws Criticism

The comments from Capital Flows come just days after Hyperliquid's SpaceX-linked perpetual contract suffered a sharp dislocation, reigniting debate about the platform's growing market for synthetic pre-IPO assets. The SpaceX IPO is expected to occur by the middle of this month. 

Crypto analyst Merlijn The Trader noted on Friday that the contract plunged about 45% in roughly 30 minutes, triggering around $1.5 million in liquidations across more than 400 users. He argued that traders were effectively taking leveraged positions on a synthetic price feed rather than an asset backed by actual SpaceX equity ownership. "Retail gambling with 3x leverage on a synthetic token," Merlijn wrote, adding that the contract offered "no ownership" and "no rights" to underlying SpaceX shares.

The episode highlighted the risks associated with Hyperliquid's growing market for non-crypto perpetual contracts, particularly those tied to private-company valuations.

Read also: Ben Cowen Sees October Low Scenario For BTC: ‘Bitcoin Does Not Have A Monopoly On 4-Year Cycle’

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