Hyperliquid has executed its first scheduled cliff unlock for core contributors, an event that involved the release of approximately $344 million worth of $HYPE tokens (representing 2.66% of the circulating supply). Prior to the unlock, the market experienced significant anxiety regarding potential selling pressure often associated with large team allocations. However, reports confirm that the Hyperliquid team chose to stake the vast majority of these unlocked tokens rather than selling them on the open market. This decision to reinvest in the protocol's staking mechanism effectively alleviated fears of a sell-off. The move signals the team's long-term conviction in the project and has boosted investor sentiment significantly. Consequently, the HYPE price reacted positively, surging as the anticipated supply shock failed to materialize and sell pressure remained low. [Update 1] Reports further clarify that this unlock coincided with the project's first anniversary. The market response continues to be positive as the team's strategy to return rewards to the staking mechanism reinforces stability.