Hyperliquid (HYPE) Holder Urges Self-Custody to Limit CEX Market Manipulation

A holder identified as NMTD.HL urged users Nov. 15 to move Bitcoin (BTC), Ether (ETH) and other crypto assets onchain and self-custody them, arguing broader trading could limit centralized exchange (CEX) market manipulation.

NMTD.HL alleged that CEXs may use customer deposits to trade against users, then return the tokens to the original accounts or reserves after customer positions are liquidated and keep the difference. The holder said most tokens deposited on CEXs may face long-term price pressure because users give platforms and their managers control over the assets' prices.

NMTD.HL said the practice has continued for years, weakening liquidity across the crypto industry, and questioned whether some CEXs may still face solvency problems. The holder characterized centralized platforms as closed systems whose business models may involve trading against customers and profiting from stop-loss triggers and liquidations.

The holder encouraged users to trade through decentralized platforms such as Hyperliquid. NMTD.HL argued that greater onchain trading would leave CEXs with fewer opportunities to influence prices, target stop-loss orders or trigger liquidations, and described Hyperliquid as a key platform for reducing the industry's reliance on centralized exchanges.