Nvidia Perps Slide 7% as Shock Reports Put Jensen Huang’s Leadership at Risk

Nvidia-linked perpetual futures have recorded steep losses on Hyperliquid as market participants react to reports that CEO Jensen Huang could be at risk of losing his position. Bitcoin, meanwhile, has remained relatively calm, trading within its established range despite the latest market developments.

Traders across the cryptocurrency market have turned cautious following reports that Nvidia (NVDA), a major player in the artificial intelligence industry, may be preparing to replace Huang amid allegations concerning his personal relationships and a Chinese businesswoman reportedly suspected of having ties to Beijing.

NVDA perpetual contracts listed on Hyperliquid have dropped nearly 12% to $160.99 at the time of writing. Similar declines have affected contracts available through major centralized exchanges such as Binance, OKX, and Bybit.

Nvidia’s Nasdaq-listed shares ended Wednesday’s regular session at around $173 before falling more than 7% in after-hours trading.

The negative reaction across derivatives markets raises the possibility of additional volatility for the stock. Nvidia has already retreated sharply from its October 6 peak of $243, surrendering a substantial portion of its previous gains.

The uncertainty has also triggered unprecedented trading activity. According to CoinGlass, cumulative volume in Nvidia perpetual futures across exchanges has climbed beyond $4 billion, setting a new record. Binance accounts for approximately 44% of the combined volume.

Hyperliquid’s NVDA-USDC perpetual market currently has around $535 million in open interest. This makes it the largest traditional-finance-linked market on the exchange and its fourth-largest market overall, behind Bitcoin, Ethereum, and HYPE.

The surge in activity illustrates how crypto trading platforms are increasingly becoming important destinations for price discovery in traditional financial markets.

Hyperliquid has emerged as a leading venue for traders seeking exposure to conventional financial assets through perpetual contracts. Demand increased significantly during the Iran war in early March, when geopolitical developments continued during weekends while traditional exchanges were closed. Traders increasingly used decentralized platforms to take positions on oil, gold, and major stock indexes.

Bitcoin, the world’s largest cryptocurrency by market capitalization, was trading slightly lower near $73,650, remaining within its previous 48-hour trading range. The asset has occasionally shown a strong positive correlation with Nvidia shares. Meanwhile, Nasdaq futures declined 0.75%, giving back some of Wednesday’s nearly 2% gains.

Nvidia Faces Leadership Uncertainty as Reports Put Jensen Huang Under Pressure

The controversy reportedly started on November 8, when Huang acknowledged an extramarital relationship with Alice Huang, a Chinese businesswoman whom U.S. intelligence officials allegedly suspected of representing Beijing’s interests.

Following the revelations, Nvidia initiated an investigation and appointed outside legal advisers led by former acting U.S. Attorney Joon Kim. The company stated that it had no reason to believe that its confidential information, trade secrets, or U.S. national security interests had been compromised.

The situation intensified late Wednesday after The New York Times reported allegations of another extramarital relationship involving Huang and an Nvidia executive.

The Wall Street Journal subsequently reported that Nvidia’s board was considering a possible leadership change and could meet as early as Wednesday to discuss Huang’s future with the company.

Huang co-founded Nvidia more than 30 years ago and has led the semiconductor giant throughout its rise into one of the world’s most influential artificial intelligence companies.

Despite the growing speculation, Huang has not been formally removed as CEO, according to the latest reports. Nvidia’s corporate bylaws allow the board of directors to dismiss him with or without cause through a majority vote. However, no final decision regarding his leadership has been publicly announced.