HyperLiquid Delists JELLY After Vault Squeezed in $13M Tussle

HyperLiquid Delists JELLY After Vault Squeezed in $13M Tussle

whichHyperliquidity Provider (HLP), a market making vault that is a part of derivatives exchange HyperLiquid, faced a grueling loss after a trader allegedly manipulated the price of the JELLY token. HyperLiquid's native token (HYPE) fell by 20% after HLP's unrealized PNL temporarily stood at negative $13.5 million.According to Lookonchain, a trader that held $4.85 million of the JELLY token combined a short trader on HyperLiquid with on-chain sp…

A perp too far: Hyperliquid’s ‘validator put’

This is a segment from the 0xResearch newsletter. To read full editions, subscribe. Yesterday, Hyperliquid — the onchain perps DEX standard-bearer — faced an arguably existential stress test. A trader opened an $8 million short on JELLYJELLY, a low-cap memecoin, then pumped its onchain price, triggering a liquidation cascade that dumped the position onto Hyperliquid’s communal risk vault, HLP. As JELLYJELLY soared, the vault bled: At peak, oncha…

Hyperliquid (HYPE)-JELLY drama could have sparked a CEX vs. DEX war in crypto

Hyperliquid, a (supposedly) decentralized trading platform, delisted its JELLYJELLY perpetual futures after a trader’s manipulation caused $13 million in losses. The incident, developed on March 26, sparked debates about decentralization and market integrity in crypto. The drama unfolded when a trader exploited Hyperliquid’s system, forcing the platform to reimburse most users via the Hyper Foundation. This swift action followed suspicious activ…

Hyperliquid liquidation contributes to market uncertainty

This is a segment from the Lightspeed newsletter. To read full editions, subscribe. For a moment there, it really looked like Solana prices might hold. We saw a strong weekend rally, with SOL tapping $146 on Monday — its highest since the local top in early March, for what it’s worth — before retreating slightly on Tuesday. But as of this afternoon, the price has fallen sharply to $137. I think it’s fair to speculate that this drop was triggered…

Hyperliquid Faces Scrutiny Over Decision-Making Process in the Wake of Market Incident

Hyperliquid’s swift action on JELLY delisting contrasts with past inaction during the Radiant hack. Critics question Hyperliquid’s decentralization after inconsistent governance response. Hyperliquid plans improvements to governance and technology based on recent incidents. Hyperliquid, a decentralized finance protocol, has come under scrutiny following its handling of a recent incident involving suspicious market activity. This event led to the…

Hyperliquid Faces $12M Loss in $JELLY Manipulation as It Delists Token

The DeFi platform Hyperliquid removed $JELLY (jellyjelly) tokens due to whale exploitation which resulted in a $12 million loss during the price manipulation event. On X, the LookOnChain reported the incident that highlighted how unstable DeFi markets are particularly for leveraged perpetual futures. A massive whale with 124.6M $JELLY($4.85M) is manipulating the price of $JELLY(jellyjelly) to make Hyperliquidity Provider (HLP) face a loss of $1…