The hypersensor camera operates with a unique multispectral imaging modality developed recently at Surface Optics Corporation. The Hypersensor camera is small, low cost, rugged, and solid state, using micro-optics and an array of spectral filters, which captures a complete multispectral cube of spatial and spectral data with every focal plane exposure. The prototype VNIR Hypersensor camera captures full cubes of 588x438 (spatial pixels) x 16 (spectral bands) at frame rates up to 60 Hz. This paper discusses the optical design of the Hypersensor camera, the measured performance, and the design and operation of a custom video-rate hyperspectral processor developed for this system.