TL;DR
Hyperliquid traders increased their exposure to US semiconductor and memory stock perpetuals by 60% over two sessions , despite underlying share prices falling between 12% and 28%.
Funding rates climbed to approximately five times their normal level , suggesting strong demand for long positions.
Meanwhile, open contracts in major technology stocks declined 27% , indicating that traders favored beaten-down chip stocks over broader AI exposure.
The latest AI-driven stock market correction has revealed a notable shift in trading activity on Hyperliquid . While traditional investors reduced their exposure to semiconductor companies, onchain traders moved in the opposite direction, increasing their positions as prices continued to decline. The activity provides another example of how decentralized trading platforms offer real-time insight into investor positioning.
According to data analyzed by Dune and published on November 6 , traders accumulated exposure to US chip and memory stock perpetuals during November 4 and 5. The trend emerged as political uncertainty and concerns about artificial intelligence infrastructure spending intensified across financial markets.
Hyperliquid Traders Increase Exposure As Semiconductor Stocks Slide
The broader selloff followed the Democrats’ sweeping victories in the US midterm elections, which raised concerns about potential restrictions on data-center expansion and the future pace of AI infrastructure investment .
On November 5, the Nasdaq Composite dropped 5.5% , while the S&P 500 declined 4.4%. Semiconductor companies experienced particularly heavy selling pressure. Nvidia lost more than 9%, while AMD suffered a 17.3% decline. Qualcomm also dropped following disappointing guidance for smartphone chip sales.
Despite these losses, Dune’s analysis found that outstanding contracts across US semiconductor and memory perpetual markets increased 60% . Meanwhile, the underlying stocks declined between 12% and 28%.
The contrast suggests that traders viewed the correction as an opportunity to accumulate exposure rather than simply exit the sector. However, the shift was selective. Open contracts in major technology companies, including Microsoft, Amazon, Meta and Alphabet, declined 27% over the same period.
Rising Funding Rates Reveal Strong Demand For Long Positions
Funding rates provide additional evidence of this positioning shift. On Hyperliquid , perpetual contracts use periodic payments between long and short traders to help keep contract prices aligned with their underlying reference prices.
Dune recorded funding levels approximately five times above their usual baseline in the affected chip markets. Positive funding means long traders pay short traders, reflecting a premium in perpetual contract pricing.
This mechanism also creates an important cost for leveraged buyers. Funding payments occur hourly, meaning traders can accumulate substantial expenses even when prices remain unchanged. A prolonged decline can further increase liquidation risks by reducing available margin.
