Surprisingly large polarizations in hyperon production by unpolarized protons have been known for a long time. The spin dynamics of the production process can be further investigated with polarized beams. Recently, a negative asymmetry AN was found in inclusive Λ0 production with a 200GeV/c transversely polarized proton beam. The depolarization DNN in p↑+p→ Λ0 +X has been measured with the same beam over a wide xF range and at moderate pT. DNN reaches positive values of about 30% at high xF and pT∼1.0GeV/c. This result shows a sizable spin transfer from the incident polarized proton to the outgoing Λ0.