Segmental duplications at proximal loci can generate transcriptionally active chimeric pseudogenes (φgenes) by fusing contiguous sequences from two parental genes. These chimeric φgenes often co-opt 5′ regulatory elements for activation and acquire 3′ modifications that enhance transcript stability, with some retaining coding potential to produce novel or truncated proteins. Functional analyses indicate that such φgenes contribute to human-specific regulatory processes; notably, HYDIN2 knockdown impairs neuronal differentiation. Proteomic profiling of HYDIN2 knockdown cells was performed to identify downstream effectors and pathways associated with its regulatory function.