The post Jelly token goes sour after $6M exploit on Hyperliquid appeared on BitcoinEthereumNews.com.

Suspicious trading activity led decentralized exchange Hyperliquid to delist the Jelly-my-Jelly (JELLY) memecoin, with details of an exploit unraveling over the course of a few days.  The decentralized finance sector has already seen historic exploits in 2025, as the space struggles with issues of oversight and security. The Bybit hack saw North Korean hackers get away with $1.4 billion in February alone. The JELLY incident, in which a whale exploited the Hyperliquid exchange’s liquidation parameters, getting away with millions, is just the latest exploit to rock the industry.  Observers roundly criticized Hyperliquid’s reaction to the short squeeze, with one even comparing it to the ill-fated FTX. Here’s a look at how the incident unfolded. Jelly token price crashes ahead of Hyperliquid exploit Venmo co-founder Iqram Magdon-Ismail launched the JELLY token as part of the JellyJelly Web3 social media project. Following the launch on Jan. 30, the token price crashed from $0.21 to just $0.01 some 10 days later.  Jelly-my-Jelly token price lost most of its value in the first two weeks of trading. Source: CoinMarketCap While the coin’s market cap initially boasted almost a quarter of a billion dollars, by March 26 it had a market cap of roughly $25 million. A short squeeze of JellyJelly The short squeeze on the JellyJelly token took place over the course of just a few hours on March 26. According to a postmortem by Arkham Intelligence, this is how it went down: The exploiter deposited $7 million on three separate Hyperliquid accounts, making leveraged trades on the illiquid Jelly token. Two accounts took $2.15 million and $1.9 million long positions on JELLY, while the other took a $4.1 million short position to cancel the others out. As the price of JELLYJELLY increased, the short position was liquidated, but it was too large to…

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Filed under: News - @ March 29, 2025 3:21 am