Hyperliquid, a DeFi perpetual futures platform, found itself in deep waters after a $5M short position on Solana memecoin JellyJelly ($JELLY) went sideways due to a trader’s liquidation. As $JELLY’s price soared—driven by a short squeeze and meme hype—Hyperliquid’s unrealized losses ballooned to $10.63M, with its $230–240M vault at risk if prices hit $0.17.
Then came Binance and OKX, listing $JELLY perpetual futures, a move some called opportunistic, further fueling the squeeze. This sparked accusations of market manipulation, with rumors swirling about Binance-backed wallets and insider plays.
Hyperliquid’s response? They pulled the plug on $JELLY perpetuals after detecting irregular activity, took a $10M realized loss, and suffered a staggering $60M TVL drop in just 24 hours. Now, they’re issuing refunds—excluding flagged accounts—to stabilize the situation.
The fallout is a multi-million-dollar mess, highlighting a growing clash between DeFi and CeFi giants. With $JELLY at the center of it all, the drama is far from over. Stay tuned.
