Nvidia perpetual contracts dropped on Hyperliquid following the artificial intelligence chip manufacturer’s announcement on Sunday that its board of directors is probing CEO Jensen Huang’s connection to a woman flagged by intelligence officials as a Chinese spy.
Nvidia’s NVDA-USDC perps declined 3.8% over the previous 24 hours to reach $180.50 on Hyperliquid as of 10:10 p.m. ET Sunday, with 24-hour volume hitting $170 million. These perpetuals began decreasing near 4 p.m. ET, touching an intra-day low of about $178.10 before mounting a minor rebound.
Earlier on Sunday, Nvidia announced the initiation of an inquiry into Huang after disclosures indicated he had been the “target of a foreign intelligence effort.”
“While the Board has no reason to believe that either national security or NVIDIA secrets were compromised, the Board’s inquiry will examine all available information,” the official statement noted.
Furthermore, Nvidia released an internal memo written by Huang to staff members wherein he confessed to infidelity regarding his spouse.
“I was unfaithful to my wife. My actions hurt her and our children. There is no excuse for what I did. I am deeply sorry,” Huang stated, adding his endorsement of the board’s investigation into the alleged national security issues and promising complete cooperation.
This probe materialized subsequent to a report last week by the New York Times revealing that a memo distributed among senior American policymakers last spring claimed Alice Huang, a Chinese businesswoman, was enlisted by China’s Ministry of State Security to gather intelligence concerning Nvidia’s founder.
“Today’s news will not slow Nvidia. Jensen is committed to continuing to lead Nvidia as CEO without interruption,” a representative for the company informed The Block.
On Polymarket, a prediction platform signaled a 16% probability that Huang might announce his resignation or face removal by December 31, 2026. A comparable market hosted by Kalshi estimated the likelihood of his departure by January 1, 2028, at 18%.
Broader market reaction
In the interim, bitcoin Bitcoin (BTC) retreated 0.8% to $75,113, whereas ether Ethereum (ETH) dropped 4.2% to change hands at $2,140, according to data from The Block’s price page.
Conversely, stock index futures ticked upward late Sunday evening. S&P 500 futures increased 0.6%, and the Nasdaq 100 ticked higher by 0.7%.
Asian stock markets opened higher on Monday. The Taiwan Weighted Index climbed 5.4%, Japan’s Nikkei 225 grew 3.2%, and South Korea’s Kospi advanced 1.7%.
Dan Khus, lead analyst at LVRG Research, explained to The Block that the downward movement in Nvidia perpetuals “reflects a classic risk-off reaction,” with the decline “likely amplified by leveraged positioning.”
“Bitcoin’s modest decline suggests limited direct spillover, while Ether’s sharper fall points to broader altcoin sensitivity,” Khus remarked.
Rick Maeda, head of markets at Laevitas, mentioned that with traditional U.S. markets closed, NVDA perpetual futures across cryptocurrency venues such as Hyperliquid served as the sole arena for price discovery, meaning “it took the first reaction on thinner liquidity.”
“However, the overhang will last as long as the investigation does and the real risks are congressional escalation, tighter scrutiny of China-linked sales, or any sign of a leadership change, given how central Huang is to Nvidia’s story,” Maeda further observed.
Simultaneously, Dominick John, an analyst at Zeus Research, indicated that the drop in Nvidia perps “signaled weakening near-term sentiment and increased bearish positioning.”
“Deeply negative funding suggests short positioning may be becoming crowded, leaving room for a relief rebound if underlying U.S. equities stabilize,” John concluded.
Originally published at https://www.theblock.co/news/defi/2026-11-08-nvidia-perps-slide-jensen-huang-436047.
