Hyperliquid (HYPE)-JELLY drama could have sparked a CEX vs. DEX war in crypto
Hyperliquid, a (supposedly) decentralized trading platform, delisted its JELLYJELLY perpetual futures after a trader’s manipulation caused $13 million in losses. The incident, developed on March 26, sparked debates about decentralization and market integrity in crypto. The drama unfolded when a trader exploited Hyperliquid’s system, forcing the platform to reimburse most users via the Hyper Foundation. This swift action followed suspicious activity that rattled the decentralized exchange’s native token, HYPE, and its Hyperliquidity Provider Vault (HLP). Essentially, the trader opened a $6 million short position on JELLYJELLY, as detailed by several media outlets. They then pumped the Solana-based memecoin’s price on-chain, surging it over 400%, according to Arkham Intelligence . This triggered a liquidation, but the position’s size overwhelmed Hyperliquid’s system. Picks for you ...