Huma Finance co-founder Richard Liu attributed recent severe HUMA price volatility to a security breach affecting an early liquidity provider. An investigation revealed that on October 22, the LP's wallet was hacked, resulting in the sale of approximately 12 million airdropped HUMA tokens into the market. While the team anticipated volatility ahead of the November unlock, the magnitude exceeded expectations. Data from the period between November 2 and 7 shows open interest across platforms surged from roughly 620 million to 1.1 billion tokens, with perpetual contract volume reaching 7 to 10 times spot trading levels. Funding rates have remained negative since November 4. Huma stated it has questioned its engaged market makers but found no evidence of malicious manipulation. The Huma Foundation confirmed that neither it nor affiliated entities have conducted any HUMA transactions over the past three months and holds no plans to sell tokens during the upcoming unlock window. The Foundation maintains it has provided consistent DEX liquidity since the Token Generation Event without changing its setup over the past year, enforcing a strict policy prohibiting employees from actively trading HUMA.