Random thoughts on the HLP Jelly short situation:
-Delisting the token and settling all positions at mark price seems like the most obvious outcome. As I write this tweet thread, the orderbook has been emptied, so this looks to be happening.
- However it concludes, it seems unlikely that HLP comes out of this without a multi million dollar loss.
- An overall loss at ~$10m is not insurmountable. If the HL team decides to make depositors whole, they can do it with 1-2 weeks of protocol revenue.
- I expect a swift delisting of any other low mcap, low volume tickers that could be manipulated a similar way.
- Don't think this really affects any investment thesis in HYPE. Just a harsh lesson learned in making the protocol more robust.
Hyperliquid