The post Hyperliquid (HYPE) Price Crashed After Risk Management Updates Past Jelly Incident: What’s Happening? appeared on BitcoinEthereumNews.com.

Hyperliquid has been among users’ most preferred crypto platforms, driving HYPE token price even in the crypto market crash or similar conditions. However, the last few weeks’ incidents have affected its image and performance severely, causing security and transparency concerns. Amid the whales continuously exploiting Hyperliquid’s liquidation system, its worth is declining. What’s all the chaos? Let’s discuss this. Hyperliquid Price in Turmoil Following the Jelly Incident Hyperliquid, being a decentralized crypto platform, has been gaining investors’ attention against the top centralized exchanges on various metrics. However, all that shifted with the crypto whales exploiting the network and drawing security concerns. This began with a Bitcoin whale shifting a $4M loss on the network by removing its collateral in mid-trade. Soon, more and more similar incidents happened on the platform, resulting in serious security concerns. The most recent one includes the JELLY price manipulation incident, where a trader deposited $7M across three accounts and executed leveraged trades. Interestingly, two accounts took the long positions and the other in the short. Their association resulted in the JELLY price surging 400%. With that, the short got liquidated, but the loss got passed to Hyperliquid’s Provider Vault (HLP). In response, Hyperliquid delisted the JELLY token, citing suspicious activity. Although the foundation promised to compensate affected users, the Hyperliquid price was severely affected due to specific account limitations. Community Criticism Fueled Hyperliquid Price Crash This incident drew the global crypto community’s attention and criticism. Various crypto leaders showed disappointment with the platform, with some, like Bitget CEO, calling Hyperliquid unprofessional and stating that it is following FTX’s path. More importantly, community criticism followed due to the compensation for the JELLY incident for specific accounts. Investors have pointed out bias and favoritism. Users with JELLY long positions at the time of settlement will be refunded by…

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Filed under: News - @ March 29, 2025 10:13 am