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Nvidia-linked perpetual futures plunged nearly 12% on Hyperliquid as reports emerged that the company's board was considering removing CEO Jensen Huang. The contracts fell to USD 160.99, while Nvidia stock dropped more than 7% in after-hours trading.
The selloff followed new allegations concerning Huang's personal relationships and an ongoing company investigation. Meanwhile, trading volume across Nvidia-linked crypto derivatives exceeded USD 4 billion as uncertainty spread through technology markets.
Nvidia perps recorded sharp losses across several cryptocurrency exchanges following reports about Huang's leadership. Binance, OKX, and Bybit reported similar declines as traders reacted to the developments.
Meanwhile, Nvidia shares closed Wednesday at approximately USD 173 before falling to around USD 160.80 in extended trading. The stock had previously reached USD 243 on October 6, but subsequent declines erased its earlier gains.
According to CoinGlass, cumulative trading volume across Nvidia perpetual futures exceeded USD 4 billion, setting a record. Binance accounted for approximately 44% of that activity.
On Hyperliquid, Nvidia-linked contracts reached USD 535 million in open interest. This made them the exchange's largest traditional-finance-linked derivatives market and its fourth-largest market overall.
Only Bitcoin, Ethereum, and HYPE contracts held larger positions on the platform.
The activity also showed how cryptocurrency exchanges have become venues for trading traditional financial assets. Earlier this year, traders used Hyperliquid to respond to developments surrounding the Iran war.
As traditional markets remained closed during weekends, the exchange attracted activity in oil, gold, and equity-linked contracts.
The leadership dispute began after Huang acknowledged an extramarital affair on November 8. Reports identified the woman as Alice Huang, a Chinese businesswoman whom U.S. intelligence officials suspected of connections to Beijing.
Nvidia subsequently launched an independent investigation and appointed outside counsel. However, the company said it had no evidence that national security or confidential corporate information had suffered any compromise.
The situation intensified Wednesday when The New York Times reported allegations of another relationship involving an Nvidia executive. The report also described footage allegedly showing Huang and Kimberly Powell together at a San Jose hotel.
Soon afterward, The Wall Street Journal reported that Nvidia directors were preparing to consider Huang's removal. The board could make that decision through a majority vote under the company's bylaws.
What would Huang's removal mean for Nvidia as it approaches its next earnings report?
Although speculation increased, Nvidia had not announced his dismissal in the reports cited. Huang, who co-founded the company in 1993, also had not publicly announced plans to resign.
JonesTrading analyst Michael O'Rourke described the situation as a difficult corporate governance challenge. He said confirmed findings from the investigation could increase pressure on directors to act.
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The selling pressure extended beyond Nvidia as other technology companies recorded losses in extended trading.
CoreWeave shares fell approximately 5% after gaining 24% during regular trading. Meanwhile, Intel, Dell, and Super Micro declined between 3% and 4%.
Nasdaq futures also fell about 0.75%, reversing part of Wednesday's nearly 2% advance. The technology-heavy futures index lost close to 300 points during the downturn.
Bitcoin remained comparatively stable near USD 73,650 despite the weakness in technology stocks. Its price stayed within the trading range recorded over the preceding 48 hours.
Nvidia shares also turned negative for the year following Wednesday's close. The stock was approximately 8% lower year-to-date before further after-hours losses.
Meanwhile, Nvidia's next quarterly earnings announcement remains scheduled for November 17. The company faces that reporting date as its directors review the allegations involving its longtime chief executive.
Nvidia's leadership uncertainty triggered heavy selling across equity and cryptocurrency derivatives markets. Nvidia perps fell nearly 12%, while trading volume exceeded USD 4 billion. The company's board continues to face questions about Jensen Huang's future as CEO. Investors now await further developments and Nvidia's November 17 earnings announcement.