Hyperliquid on Track to Become FTX 2.0: Bitget CEO After JELLY Incident

Following the JELLY token incident, Hyperliquid is present criticized by respective analysts and manufacture leaders with the Bitget CEO Gracy Chen vociferously stating that the DEX is connected way to go FTX 2.0. 

In her caller X post, Chen slammed that the mode Hyperliquid handled the JELLY incidental was “immature, unethical, and unprofessional” which triggered losses connected guiltless users and raised superior doubts implicit its integrity.

The contention began erstwhile a trader opened a $6 cardinal abbreviated presumption connected Hyperliquid connected JellyJelly (JELLY), a low-cap token with a marketplace headdress of astir $20 cardinal astatine the time. In a shocking move, the trader past manipulated the marketplace by pumping JELLY’s terms on-chain, deliberately liquidating his ain abbreviated presumption and leaving Hyperliquid to sorb a nonaccomplishment of implicit $12 million. 

The forced compression caused JELLY’s marketplace headdress to surge from $10 cardinal to implicit $50 cardinal successful nether an hour, and immoderate analysts warned that if it reaches $150 million, Hyperliquid could person faced a afloat liquidation. In effect to the escalating crisis, the speech abruptly delisted JELLY, further fueling concerns astir its transparency and hazard management. 

While Hyperliquid defends its decision, stating that the delisting was indispensable owed to utmost marketplace manipulation, the incidental has near traders questioning whether the level tin genuinely run fairly.

“Despite presenting itself arsenic an innovative decentralized speech with a bold vision, Hyperliquid operates much similar an offshore CEX with nary KYC/AML, enabling illicit flows and atrocious actors,” said Chen. 

Chen besides emphasized that Hyperliquid’s merchandise plan is alarming arsenic its “mixed vaults exposure users to systemic risk” and “unrestricted presumption sizes unfastened the doorway to manipulation.” 

“Unless these issues are addressed, much altcoins whitethorn beryllium weaponized against Hyperliquid, putting it astatine hazard of becoming the adjacent catastrophic nonaccomplishment successful crypto,” she said. 

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