A potential scandal surrounding Nvidia CEO Jensen Huang emerged on Sunday, prompting significant trading activity in alternative financial products before traditional markets opened on Monday [1]. As news of the scandal broke, perpetual futures on Nvidia became the first avenue for investors to express bearish sentiment, with Hyperliquid's xyz contract slipping to as low as $180.15 on $200 million of volume by 3:30 p.m. ET on Sunday [1]. Both equity shares and perpetual futures on Nvidia fell below $178 overnight, with the stock trading 7% lower on Monday [1].
Perpetual futures—highly leveraged bets that never expire and trade around the clock, seven days a week—filled a critical market void when traditional equity markets were closed [1]. According to Rich Repetto, a former exchange analyst and market structure expert, "Perps have filled a significant gap or void in the market" by providing "access as well as price discovery to markets when there otherwise would be a vacuum" [1]. This weekend trading activity underscores a growing investor demand for continuous market access, particularly when major news breaks outside regular trading hours [1].
Beyond perpetual futures, other exotic financial products also saw increased activity related to the Huang scandal [1]. Prediction contracts on Kalshi tied to Jensen Huang's potential exit as Nvidia CEO—listed just days before the reports—saw over $105,000 traded on Sunday [1]. Additionally, pre-market options trading on Nvidia, which began trading just weeks prior, saw $15 million in options premium traded across the weekend [1]. David Schamis, CEO of Hyperliquid Strategies, emphasized that "news doesn't stop when the market is closed" and that "investors want deep liquidity and price discovery when it is needed, not just nine-to-five" [1].
CONCLUSION
The Nvidia scandal triggered a 7% stock decline on Monday and demonstrated how perpetual futures and other alternative financial products are increasingly serving as critical price discovery mechanisms during off-hours trading [1]. The surge in weekend trading volume across perpetual futures, prediction markets, and pre-market options reflects growing investor demand for continuous market access beyond traditional trading hours [1].