The U.S. House Oversight Committee has expanded its investigation into insider trading on prediction markets to include Hyperliquid Labs. [1, 2, 5]
On September 29, Chairman James Comer (R-Ky.) sent the company a letter requesting documents and information about its user-identification procedures and how it detects suspicious trading. [1, 6]
The inquiry focuses in part on a large, leveraged short position reportedly worth $1.1 billion. It was opened on Hyperliquid shortly before President Trump announced new tariffs in October 2025. [2, 7, 15]
The committee is examining whether the platform could identify the trader and refer the activity to U.S. law enforcement. [1] The probe also includes Crypto.com and PredictIt operator Aristotle Exchange. [2, 7]
The committee set an October 13 deadline for responses. [2, 7]