Hyperwave, a yield vault protocol in the Hyperliquid ecosystem developed by Swell Labs, said it will shut down operations on Dec. 16, 2026, citing unsustainable operating costs and growing regulatory uncertainty. The announcement was made on Nov. 11, 2026, when all vaults entered withdrawal-only mode. Vaults will continue generating yield as positions are gradually unwound into underlying assets, and remaining net asset value will be sent to the wallets of vault-token holders after the deadline. GWAVE staking can be unwound at any time. Hyperwave said 100% of protocol revenue generated through the shutdown will fund HWAVE buybacks and burns. Total value locked fell from a peak of $45.75 million in August 2025 to roughly $917,000-$923,000 by the announcement, a decline of about 98%. The team warned users about phishing attempts and urged them to use official channels, including Discord or the application, for support.