Meme Coin Manipulation Intensified: Millions of Dollars in Liquidation Occurred! - Coin Bulletin

The JELLY manipulation experienced on the Hyperliquid exchange led to significant losses in the market, while aggressive trades by large investors resulted in millions of dollars in liquidations.

The meme coin JELLY has become a major source of speculation among large investors in the cryptocurrency market. Transactions conducted on Hyperliquid left the exchange's liquidity providers in a difficult position, resulting in liquidations worth millions of dollars. Along with the aggressive strategies of investors, the Hyperliquid Vault faced significant losses.

A large whale created volatility in the market by exploiting the $124.6 million JELLY (JELLY)** asset. First, it sold a large amount, driving the price down and causing Hyperliquid Vault to take (kısa) short position worth 398 million JELLY**. He then bought JELLY again, driving the price up, causing Hyperliquid Vault to lose $12 million. This manipulation shook the balance of the market and made investors nervous.

( Loss is growing increasingly

The constriction in the cryptocurrency market )short squeeze### caused the price of JELLY to rise by 429%. With this increase, Hyperliquid Vault faced a risk of loss exceeding 10.5 million dollars due to massive short positions. If the price of JELLY had reached 0.15374 dollars, Hyperliquid Vault's 230 million dollar fund could have completely evaporated.

After this manipulation, an investor with the address 0xde95 withdrew their collateral after opening a short position in JELLY. As a result, HLP passively liquidated a short position worth 4.5 million dollars. At the same time, a new wallet with the address 0x20e8 opened a long position in JELLY, earning a profit of 8.2 million dollars.

( Response from Hyperliquid

After the events, Hyperliquid made a critical decision to prevent speculative movements in the JELLY market. The exchange closed JELLY transactions at $0.0095, securing a profit of $703,000. However, this decision did not prevent significant losses, and Hyperliquid Vault faced serious damages.

The JELLY manipulation has once again revealed how decentralized exchanges carry significant risks in the cryptocurrency market. While it remains a matter of curiosity how Hyperliquid will respond to this incident, investors continue to closely monitor the fluctuations in the market.