The post Hyperliquid delists JELLY JELLY crypto after price spike – $12M vault loss narrowly averted! appeared on BitcoinEthereumNews.com.

A leveraged attack on Jelly Jelly (JELLY) Futures left Hyperliquid reeling, exposing protocol vulnerabilities and rattling investor trust HYPE token dropped by 22% after validator vote, signaling community’s doubts about platform governance On 26 March, Hyperliquid [HYPE] delisted JELLYJELLY (JELLY) Futures after a massive short position triggered a market-wide shakeout. Source: X Whale wallet profits as vault bleeds A trader opened a $6 million short with 20x leverage, then bought JELLY spot to force liquidations. The prices surged 400–500%, pushing the liquidator vault into a $12 million unrealized loss. Without action, a sustained rally could have liquidated the vault entirely, if JELLY hit a $150 million market cap. However, the validator committee acted fast. They force-settled JELLY at $0.0095, flipping the situation. What looked like a $10.63 million disaster became a $703,000 net gain. And yet while the vault was bleeding, another wallet entered the scene. Wallet 0x20e8 entered a long position worth $8.2 million as the liquidations unfolded. It exited within minutes, securing $8 million in profit. Now, this wasn’t the first time such a pattern emerged. In fact, the move echoed a prior exploit involving BERA in February. Meanwhile, wallet 0xde95 was traced as the short origin. Source: Arkham It sold JELLY spot to force upward pressure, driving the vault into risk. Here, it’s worth noting that five wallets linked to the attacker have acquired 10% of the token’s supply since 22 March. In some way, the on-chain patterns hinted at deliberate coordination. Data confirms manipulation, not organic growth JELLY’s market cap hovered between $10 and $20 million. That made it vulnerable to manipulation by even modest capital. To put it simply, just $4–8 million in spot buys shifted the market cap by over 400%. Source: Birdeye Trading volume surged by 1,852%, climbing to $170 million in a…

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Filed under: News - @ March 28, 2025 7:22 am