Analysis Crypto by Thebittimes.Com

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 ...

Bitcoin ETFs could be subject to manipulation in the spot Bitcoin market. The SEC's chief concern is figuring out how to prevent manipulation induced by ETFs. Investors are eagerly anticipating the potential approval of a spot bitcoin exchange-traded fund (ETF) by the United States Securities and Exchange Commission (SEC). The excitement began in early June when the investment giant BlackRock submitted a filing for the product and gained further momentum after a court decision mandated the SEC reconsider its rejection of Grayscale's proposal to transform its Bitcoin Trust (GBTC) into a spot ETF. The SEC’s objection to ETFs is related to the fact that Bitcoin (BTC) is traded in unregulated venues around the world, which poses a challenge in preventing fraud and price manipulation. One attempt to address the issue has included surveillance-sharing agreements (SSA) with some cryptocurrency exchanges. In theory, this would allow the identification of bad actors who attempt to mani...