A coordinated group of whales, suspected of being backed by main cryptocurrency exchanges, manipulated the worth of the $JELLY token, leading to substantial losses for Liquid Suppliers on Hyperliquid.
Hyperliquid Incurred Important Publicity As a result of Whales’ Actions
In keeping with Lookonchain, this dealer executed a big brief place on Hyperliquid whereas concurrently buying JELLY tokens externally. Subsequently, the dealer eliminated their margin, inflicting Hyperliquid’s HLP to take over the $4.5 million loss on the brief place. At one level, this huge brief place uncovered HLP to losses exceeding $6 million.
On the similar time, one other pockets tackle opened a Lengthy order on it and at one level owned a PnL of as much as 12 million USD.
Supply: Hyperliquid
Following this, the whales proceeded to repurchase JELLY, driving the losses on the beforehand held brief place to over $12 million.
An enormous whale with 124.6M $JELLY($4.85M) is manipulating the worth of $JELLY(jellyjelly) to make Hyperliquidity Supplier (HLP) face a lack of $12M!
He first dumped $JELLY, crashing the worth and leaving HLP with a passive brief place of 398M $JELLY($15.3M).
Then he purchased… pic.twitter.com/kYcKshV4rl
— Lookonchain (@lookonchain) March 26, 2025
Issues aren’t fairly so simple as they appear
In keeping with on-chain investigator ZachXBT, the scenario extends past preliminary observations. The 2 addresses concerned within the JELLY worth manipulation, 0x20e8 & 0x67f, exhibit connections to centralized exchanges corresponding to OKX, MEXC, Bybit, and Binance. Each addresses display interactions and have acquired funding from these exchanges.
The suspicion that these exchanges could have “malicious intent” in opposition to Hyperliquid is additional substantiated by the speedy bulletins from OKX and Binance, itemizing Perpetual Pairs for the JELLY memecoin.
Study extra: Binance will Record JELLYJELLY and MAVIA on Perpetual Market
The value of HYPE reacted erratically
Following the whale’s worth manipulation of the token, the worth HYPE skilled a pointy decline. Nevertheless, thankfully, Hyperliquid promptly delisted JELLY and closed the JELLY brief place, thus avoiding any losses.
This motion contributed to a 25% surge within the worth of HYPE.
HYPE worth soar sharply after the delist announcement – Supply: CoinGecko
Conclusion
This incident seems to sign a declaration of hostility by centralized exchanges (CEXs) in opposition to Hyperliquid, a decentralized change (DEX). Amidst Hyperliquid’s rising market share, this maneuver underscores the need for this Layer 1 DEX mission to implement substantial enhancements to successfully counter main market opponents.
