Hyperliquid Loses $12M as Whales Manipulate $JELLYJELLY Price

A radical of whales has been suspected of manipulating the terms of $JELLYJELLY, a memecoin, and this caused terrible losses to Hyperliquid Vault HLP. 

The whales were said to backmost large cryptocurrency exchanges. They collaborated to rise and past aggressively little the worth of the token, impacting the marketplace severely. The token terms spiked by astir 385% past dropped soon after. 

Lookonchain recovered that a whale opened ample abbreviated positions connected Hyperliquid astatine the aforesaid clip arsenic buying Jelly tokens disconnected the platform. This strategy led to Hyperliquid facing a nonaccomplishment of $4.5 cardinal connected its HLP Vault. At 1 point, the full losses for Hyperliquid exceeded $6 million.

The whales’ transactions | Source: X 

Things took a crook erstwhile different whale opened a agelong position, further driving the terms of JELLYJELLY up. The whales yet repurchased the token, which caused Hyperliquid to endure adjacent bigger losses, bringing the full nonaccomplishment to implicit $12 million. 

ZachXBT, a well-known on-chain investigator, discovered that the wallet addresses linked to this manipulation were connected to large exchanges similar OKX, MEXC, Bybit, and Binance. This raised suspicions that these exchanges mightiness person been progressive successful the terms manipulation. 

“They deposited USDC to aggregate caller deposit addresses but besides reused 0xb8e linking much of their addresses connected Arbitrum (OKX, Bybit, MEXC arsenic good truthful not lone Binance),” ZachXBT added

The terms manipulation didn’t halt with JELLYJELLY. The worth of Hyperliquid’s ain token, HYPE, was affected arsenic well. The terms of HYPE dropped from $16 to astir $13 arsenic the marketplace adjusted. 

However, aft Hyperliquid acted accelerated by delisting JELLYJELLY and closing the abbreviated position, HYPE’s terms surged by 25%. Right now, it’s trading for $14.5.

Still, Hyperliquid is moving hard to support its level stable. The institution reimbursed astir of the users affected by the incidental and made definite to explicate that those users would beryllium automatically compensated. 

Hyperliquid besides reported that its HLP Vault inactive holds astir $220 cardinal successful deposits and has seen a affirmative nett income of $700,000 successful the past 24 hours.

Also Read: Top Memecoins Regain Momentum! Is Meme Coin Mania Incoming?