Debate over the digital currency JELLY and price manipulation:
Arkham Intelligence revealed that the incident began when a trader attempted to exploit the 'Hyperliquid' mechanism for illicit gains.
The trader opened three accounts with conflicting positions on JELLY, leading to a 400% rise in the cryptocurrency's price and unexpected liquidations.
However, 'Hyperliquid' intervened, imposing restrictions on the accounts and preventing withdrawals, forcing the trader to liquidate his positions at market price to recover part of his funds.
This was not the first incident; on March 12, 'Hyperliquid's' liquidity was affected when the liquidation of a massive long-term position on ETH worth $340 million caused losses of $4 million.
Ben Zhou, the CEO of Bybit, considered this event an important stress test for the decentralized finance (DeFi) sector.