Key Takeaways
Hyperliquid narrowly avoided a $ 12 million loss in what appears to be a Jelly-My-Jelly token manipulation scheme.
Issues have actually been elevated about Hyperliquid’s liquidation device and connected threats.
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Hyperliquid delisted JELLYJELLY after a shadowy whale’s audacious shorting spree sent out shockwaves via the exchange, almost sinking its HLP Vault with a $ 12 million loss in a matter of minutes.
After evidence of suspicious market activity, the validator set assembled and elected to delist JELLY perps.
All customers besides flagged addresses will certainly be made entire from the Hyper Structure. This will certainly be done immediately in the coming days based on onchain data. There is no …
— Hyperliquid (@HyperliquidX) March 26, 2025
The scenario began earlier today when an investor opened an $ 8 million brief setting on JELLYJELLY, a low-cap token valued at around $ 20 million at the time, according to data tracked by Abhishek Pawa, AP Collective founder. The investor after that deliberately gotten rid of margin, compeling Hyperliquid’s liquidity vault (HLP) to inherit and auto-liquidate the massive short setting.
The trader supposedly bought JELLYJELLY tokens elsewhere, pumping the token’s rate on-chain, driving it greater and requiring their own position right into liquidation.
The liquidator safe soaked up the staying brief placement, which was around $ 12 million latent loss as JELLYJELLY’s rate remained to climb. The token’s market cap peaked at around $ 50 million before delisting.
Taking advantage of the manipulated brief capture and Hyperliquid’s forced liquidations, a recently produced wallet starting with “0x 20 e 8 opened up a lengthy position on JELLYJELLY. As the cost escalated, the trader promptly took over $ 8 million in profits.
At the time, if JELLYJELLY’s price continued to climb and got to a $ 150 million market cap, Hyperliquid’s liquidator vault encountered the danger of complete liquidation. Those fears intensified as Binance and OKX announced they would certainly note the token on their futures markets.
Adhering to these news, Hyperliquid stopped briefly trading of JELLYJELLY. The exchange consequently confirmed the token’s delisting on X.
Hyperliquid eventually resolved 392 million JELLY at $0. 0095, making a $ 703, 000 profit with no losses, according to Lookonchain.
Hyperliquid liquidated 392 M $JELLY($ 3 72 M) at $0. 0095, earning a profit of $ 703 K with no loss.
Then #Hyperliquid delisted $JELLY(jellyjelly). https://t.co/zbnP 6 ujtGa pic.twitter.com/ 6 EbSms 7 oXx
— Lookonchain (@lookonchain) March 26, 2025
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