Nvidia Perpetual Futures Slide as Market Reacts to CEO Jensen Huang's Chinese Spy Scandal
Nvidia, the AI chipmaker, said Sunday that its board of directors is investigating CEO Jensen Huang’s relationship with a woman reportedly identified by intelligence officials as a Chinese spy.
Nvidia perpetual futures on Hyperliquid declined after the company announced Sunday that its board was examining Huang’s relationship with a woman reportedly identified by intelligence officials as a Chinese spy.
Nvidia’s NVDA-USDC perpetual futures fell 3.8% over the past 24 hours to $180.50 on Hyperliquid as of 10:10 p.m. ET Sunday, while 24-hour trading volume reached $170 million. The contracts began sliding at around 4 p.m. ET, reaching a local low of approximately $178.10 before recovering slightly.
Earlier on Sunday, Nvidia said it was opening an investigation into Huang following reports that he had been a “target of a foreign intelligence effort.”
“While the Board has no reason to believe that either national security or NVIDIA secrets were compromised, the Board’s inquiry will examine all available information,” the statement said.
Nvidia also released an internal memo from Huang to employees in which he acknowledged being unfaithful to his wife.
“I was unfaithful to my wife. My actions hurt her and our children. There is no excuse for what I did. I am deeply sorry,” Huang wrote. He added that he supports the board’s investigation into the reported national security concerns and would cooperate fully.
The investigation followed a New York Times report last week that a memo circulated among senior U.S. policymakers last spring alleged that Alice Huang, a Chinese businesswoman, had been recruited by China’s Ministry of State Security to collect intelligence on Nvidia’s founder.
“Today’s news will not slow Nvidia. Jensen is committed to continuing to lead Nvidia as CEO without interruption,” a company spokesperson told The Block.
On Polymarket, a prediction market showed a 16% probability that Huang would announce his resignation or be removed by Dec. 31, 2026. A comparable market on Kalshi placed the odds of his departure by Jan. 1, 2028, at 18%.
Perpetual Protocol Trade Volume (The Block)
Broader market reaction
Meanwhile, bitcoin fell 0.8% to $75,113, while ether dropped 4.2% to $2,140, according to The Block’s price page.
Stock futures, however, edged higher late Sunday. S&P 500 futures gained 0.6%, while Nasdaq 100 futures rose 0.7%.
Asian equities advanced on Monday morning. Taiwan’s Weighted Index climbed 5.4%, Japan’s Nikkei 225 rose 3.2%, and South Korea’s Kospi gained 1.7%.
Dan Khus, chief analyst at LVRG Research, told The Block that Nvidia perpetual futures’ decline “reflects a classic risk-off reaction,” with the drop “likely amplified by leveraged positioning.”
“Bitcoin’s modest decline suggests limited direct spillover, while Ether’s sharper fall points to broader altcoin sensitivity,” Khus said.
Rick Maeda, head of markets at Laevitas, said that with U.S. cash markets closed, NVDA perpetual futures on crypto platforms such as Hyperliquid were the only venue for price discovery, meaning “it took the first reaction on thinner liquidity.”
“However, the overhang will last as long as the investigation does and the real risks are congressional escalation, tighter scrutiny of China-linked sales, or any sign of a leadership change, given how central Huang is to Nvidia’s story,” Maeda added.
Meanwhile, Dominick John, an analyst at Zeus Research, said the decline in Nvidia perpetual futures “signaled weakening near-term sentiment and increased bearish positioning.”
“Deeply negative funding suggests short positioning may be becoming crowded, leaving room for a relief rebound if underlying U.S. equities stabilize,” John said.