Key Takeaways
Hyperliquid narrowly prevented a $12 million loss in what seems to be a Jelly-My-Jelly token manipulation scheme.
Considerations have been raised about Hyperliquid’s liquidation mechanism and related dangers.
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Hyperliquid delisted JELLYJELLY after a shadowy whale’s audacious shorting spree despatched shockwaves via the trade, practically sinking its HLP Vault with a $12 million loss in a matter of minutes.
After proof of suspicious market exercise, the validator set convened and voted to delist JELLY perps.
All customers other than flagged addresses will probably be made entire from the Hyper Basis. This will probably be completed routinely within the coming days based mostly on onchain information. There is no such thing as a…
— Hyperliquid (@HyperliquidX) March 26, 2025
The scenario began earlier at present when a dealer opened an $8 million quick place on JELLYJELLY, a low-cap token valued at round $20 million on the time, in accordance with information tracked by Abhishek Pawa, AP Collective founder. The dealer then intentionally eliminated margin, forcing Hyperliquid’s liquidity vault (HLP) to inherit and auto-liquidate the huge quick place.
The dealer allegedly purchased JELLYJELLY tokens elsewhere, pumping the token’s worth on-chain, driving it greater and forcing their very own place into liquidation.
The liquidator vault absorbed the remaining quick place, which was round $12 million unrealized loss as JELLYJELLY’s worth continued to climb. The token’s market cap peaked at round $50 million earlier than delisting.
Profiting from the manipulated quick squeeze and Hyperliquid’s pressured liquidations, a newly created pockets beginning with “0x20e8” opened a protracted place on JELLYJELLY. As the value skyrocketed, the dealer swiftly pocketed over $8 million in earnings.
On the time, if JELLYJELLY’s worth continued to rise and reached a $150 million market cap, Hyperliquid’s liquidator vault confronted the danger of full liquidation. These fears escalated as Binance and OKX introduced they’d record the token on their futures markets.
Following these bulletins, Hyperliquid paused buying and selling of JELLYJELLY. The trade subsequently confirmed the token’s delisting on X.
Hyperliquid finally settled 392 million JELLY at $0.0095, incomes a $703,000 revenue with none losses, in accordance with Lookonchain.
Hyperliquid liquidated 392M $JELLY($3.72M) at $0.0095, making a revenue of $703K with none loss.
Then #Hyperliquid delisted $JELLY(jellyjelly).https://t.co/zbnP6ujtGa pic.twitter.com/6EbSms7oXx
— Lookonchain (@lookonchain) March 26, 2025
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