Hyperliquid, a decentralized exchange (DEX) for perpetual contracts, has recently experienced a significant downturn, with reports indicating a 20% decline in its value on March 26, 2025. This drop has raised concerns about the platform's stability, with some questioning whether Hyperliquid is facing potential bankruptcy. Despite this setback, the platform has maintained a commanding market share, accounting for 72% of total perpetual DEX volume as of February 21, 2025. Analysts suggest that the current challenges highlight the ongoing competition between decentralized exchanges and centralized exchanges (CEXs), with many traders favoring on-chain solutions for their speed and liquidity. Observers are now looking to how the Hyperliquid team will address these issues and communicate their recovery strategy, as the market continues to evolve in favor of decentralized trading solutions.