Hyperliquid Loses $12M as Whales Manipulate $JELLYJELLY Price

March 27, 2025

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Hyperliquid Loses M as Whales Manipulate $JELLYJELLY Price

A gaggle of whales has been suspected of manipulating the worth of $JELLYJELLY, a memecoin, and this induced extreme losses to Hyperliquid Vault HLP.

The whales had been mentioned to again main cryptocurrency exchanges. They collaborated to boost after which aggressively decrease the worth of the token, impacting the market severely. The token worth spiked by nearly 385% then dropped shortly after.

Lookonchain discovered {that a} whale opened giant quick positions on Hyperliquid similtaneously shopping for Jelly tokens off the platform. This technique led to Hyperliquid dealing with a lack of $4.5 million on its HLP Vault. At one level, the entire losses for Hyperliquid exceeded $6 million.

The whales’ transactions | Supply: X

Issues took a flip when one other whale opened an extended place, additional driving the worth of JELLYJELLY up. The whales finally repurchased the token, which induced Hyperliquid to endure even larger losses, bringing the entire loss to over $12 million.

ZachXBT, a well known on-chain investigator, discovered that the pockets addresses linked to this manipulation had been linked to massive exchanges like OKX, MEXC, Bybit, and Binance. This raised suspicions that these exchanges might need been concerned within the worth manipulation.

“They deposited USDC to a number of contemporary deposit addresses but additionally reused 0xb8e linking extra of their addresses on Arbitrum (OKX, Bybit, MEXC as effectively so not solely Binance),” ZachXBT added

The value manipulation didn’t cease with JELLYJELLY. The worth of Hyperliquid’s personal token, HYPE, was affected as effectively. The value of HYPE dropped from $16 to round $13 because the market adjusted.

Nonetheless, after Hyperliquid acted quick by delisting JELLYJELLY and shutting the quick place, HYPE’s worth surged by 25%. Proper now, it’s buying and selling for $14.5.

Nonetheless, Hyperliquid is working exhausting to maintain its platform steady. The corporate reimbursed a lot of the customers affected by the incident and made certain to elucidate that these customers could be mechanically compensated.

Hyperliquid additionally reported that its HLP Vault nonetheless holds almost $220 million in deposits and has seen a constructive web revenue of $700,000 within the final 24 hours.