Nvidia Perpetuals Fall 10% as Board Reportedly Weighs Ousting Huang

Nvidia perpetual contracts (NVDA) dropped 10% on Hyperliquid during the early hours of November 12, as reported by The Block, following news that the chip manufacturer’s board was contemplating the ouster of CEO Jensen Huang. Because the reports surfaced after the closing bell of the standard US stock-market session, crypto platforms provided the initial avenue for traders to react.

Digital asset exchanges gave market participants a way to adjust their positioning prior to the reopening of the Nasdaq. At the time, Nvidia had not formally announced a final decision regarding Huang’s status.

Nvidia Leadership Reports Trigger Selling After the US Close

The threat of an executive shakeup quickly overturned the positive momentum from Wednesday’s regular trading hours, where Nvidia shares had concluded up nearly 3% before board reports dragged related contracts downward.

Related: Nvidia Opens Board Inquiry Into Alleged Chinese Spy Effort Targeting Jensen Huang

This downward pressure rapidly bled into traditional financial markets. Nvidia equity dropped over 7% in after-hours dealings, while contracts tied to the firm on platforms like Binance, OKX, and Bybit also retreated.

For market participants maintaining overnight exposure to NVDA, the overriding concern was whether the board would ultimately unseat the co-founder who has steered Nvidia for more than thirty years.

Nvidia Perpetuals Draw More Than $4 Billion in Trading

Combined perpetual-futures volume for Nvidia across various exchanges climbed to a record peak exceeding $4 billion, referencing Coinglass data highlighted by CoinDesk. Binance was responsible for 44% of this overall activity.

Data from Binance Research indicated that 24-hour volume for its NVDAUSDT product reached $2 billion. Because activity persisted after the official stock session wrapped up, investors were able to recalibrate their Nvidia exposure while standard US equities remained closed.

This heavy turnover transformed the leadership uncertainty into an immediate trading catalyst across multiple cryptocurrency platforms, as participants scrambled to reposition ahead of the next standard Nasdaq opening bell.

Nvidia’s Investigation Expands Into a Succession Question

The disclosures surrounding the board followed Huang’s admission of an extramarital relationship, which prompted Nvidia to hire external legal counsel to look into the matter. A report published late Wednesday by The New York Times alleged a secondary relationship with another corporate executive, leading The Wall Street Journal to report that preparations were underway to remove him.

According to CryptoPotato, the board also retained an outside firm to scout potential successors and weighed the appointment of an interim chief executive, giving the directors structural options to oversee a transition should they choose to move on from Huang.

Nvidia stated it had “no reason to believe” that company secrets or US national security had been compromised. Shareholders are now waiting on the final findings of the board alongside any official statements regarding its leadership path.

Huang’s Possible Departure Creates Its Own Risk

Offering a contrasting viewpoint, The Kobeissi Letter advised against removing Huang, arguing that there is “no clear replacement” and that his exit would damage both Nvidia and its investors. As directors review his behavior, executive succession has itself transformed into a major risk factor.

An official corporate decision serves as the upcoming benchmark, which will be followed by any disclosures concerning a permanent or temporary successor. The trading price of Nvidia once standard Nasdaq operations resume will provide an additional market indicator. Retaining Huang would keep the spotlight on the ongoing investigation, whereas dismissing him would place a fine-toothed comb over his successor and the terms of the handoff.

FAQ

When did Huang acknowledge the relationship that preceded Nvidia’s investigation?

Huang acknowledged the relationship on November 8, 2026. He also sent employees an email apologizing for his conduct.

Who is leading the outside legal team investigating the matter?

Former acting US Attorney Joon Kim is leading the outside counsel appointed for the inquiry. Nvidia opened the investigation following Huang’s acknowledgment.

What voting threshold can Nvidia’s board use to remove its CEO?

Nvidia’s bylaws allow directors to remove the CEO by majority vote. They can do so with or without cause.

How much of Binance’s reported Nvidia perpetual-futures volume occurred after the US cash session closed?

Roughly half of the $2 billion in 24-hour NVDAUSDT volume occurred after the cash close, according to Binance Research. The leadership reports emerged after regular stock trading had ended.

What alternative to removing Huang did The Kobeissi Letter recommend?

The market commentary account urged a thorough investigation and consultation with shareholders. It placed particular emphasis on shareholder input before a leadership decision.

This article is for information only and is not financial advice.