Hyperliquid Liquidation Crisis
Recently, Hyperliquid, which claims to be a top-tier DEX, has been in turmoil. A trader made a $5 million short position on JELLY and unfortunately got liquidated. This caused the price of JELLY to double within half an hour, leading to a floating loss that skyrocketed to $13.24 million. Some believe this was not an accident and that someone must be manipulating things behind the scenes.
Upon further inspection, the total locked value in Hyperliquid has plummeted to $258 million, and the HYPE token dropped by 20% in just one day. Wasn't Hyperliquid's liquidation mechanism supposed to protect the platform? How did it turn into a cash withdrawal machine?
Even worse, if the price of JELLY is pushed to $0.17, the $240 million in the liquidity pool could be wiped out immediately. Previously, the officials confidently stated they would reduce leverage and increase margin, but instead, bugs piled up. #巨鲸动向
High leverage combined with automated liquidation may seem impressive, but once targeted by big whales, it becomes a ticking time bomb.
Once market confidence collapses, TVL shrinks. If Hyperliquid does not reform its mechanisms in time, it could be headed for disaster. To be honest, DeFi was originally a symbol of freedom, and the temptation of high yields is hard to resist. But reality has given us a harsh slap: some people can freely harvest you.
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