The Hypnos T-Type was a one-of-a-kind variation of the T-103 Tyrant which was created in the Sheena Island purpose-built Tyrant Plant and was the brainchild of Vincent Goldman. The Tyrant Plant itself was one of the key factories that the T-103 model was produced and as such Vincent had many opportunities to experiment with many different T-103s to attempt to find the perfect balance between power, stability and overall effectiveness. Hypnos-T was developed as part of a development project advanced by Vincent Goldman with the intent to realize the goal of a smaller, more humanoid Tyrant model capable of disguising itself as a human and infiltrating enemy territory. The first component of its creation was the "Hypnos gene." Over a period of about three weeks, the Gene Application Engineering Laboratory led by a scientist named Klein conducted an experiment to determine strong genes which would improve the genetic makeup of a B.O.W. Many cells of different types were made to fight, and those that survived were thrown at each other again until only the strongest remained. Hundreds of thousands of gene selections were performed over about three weeks. As the experiment continued, the scientists were hit with sleepiness and a certain cell was selected from all the other cells. The scientists named the gene of this cell Hypnos, after the Greek God of Sleep. A fitting name since the cell containing this gene has been found to benefit from sleep induction. It quickly overtakes other cells by causing them to sleep before killing them.

The second component was a large quantity of a neurotransmitter unique to the pituitary gland of adolescents in the final stage of puberty, named "β Hetero Nonserotonin." Many teenagers were kidnapped from all over the world to gather the necessary amount and the surgery to extract the substance, which involved slicing open the subject's skull, was usually performed without anesthetic due to the fact that it reacted to the excretion of noradrenaline, most excreted when a human is placed in a state of excruciating pain and fear. Once enough of the substance was gathered with a high level of purity, it was injected during the gene culture of the Tyrant alongside the Hypnos gene. As well as achieving the goal of a small Tyrant capable of disguising itself as a human, it also gained superior regenerative and transformation properties as a result of the Hypnos gene promoting the constant production of stronger cells within the body. This would potentially make Hypnos-T perfect at a cellular level.

Like other Tyrant models, the Hypnos-T mutated when it experienced a threat to its life, but unlike most other models, it had a third transformation. Like other Tyrants, it maintained a single claw on its left hand which it utilized as its primary method of attack. It was smaller in size in comparison to other Tyrants, being based on a younger male host. In its first stage, the heart was not exposed; it was protected by a layer of tissue which separated during later mutations allowing the organ to expand. As the Hypnos-T sustained injury, it underwent several stages of mutation, developing increased muscle mass, larger claws and an enlarged heart to compensate for the increased blood flow.

As with all tyrant models produced from the T-Virus and variations thereof, it undergoes a further stage of mutation once it has been severely, sometimes fatally, injured. In the case of the Hypnos Tyrant the mutation reveals a more ferocious creature with more stamina, more agility, and much more aggression.

In its final form, all ability for this monster to follow commands has been extinguished and replaced by a creature with mindless rage. It acts very much like a berserker, not feeling any pain, its sole mission to destroy whatever it has set its mind on. In this form it was impervious to small arms fire and could only be destroyed with a direct hit from a series of missiles.