🟢 The story is that yesterday, on March 26, a 'whale' holding 124.6 million JELLY (~4.85 million USD) opened a Short position on this meme with a volume of 6 million USD on Hyperliquid. Afterwards, the whale purchased a large amount of $JELLY tokens on other exchanges, causing the price to surge by 429% within an hour, leading to the liquidation of that Short position. Hyperliquid had to take over the position, but due to the short time frame and the rapid price increase, the exchange faced an unrealized loss of between 10.6 to 12 million USD. If the price of $JELLY continues to rise, the losses could reach 230-240 million USD, posing a risk of the exchange's collapse.
🟢 To handle the crisis, Hyperliquid decided to delist JELLY and close all positions at a price of 0.0095 USD, turning a loss into a small profit of about 700,000 USD. Hyper Foundation commits to compensating unaffected users based on on-chain data, expected to complete in a few days.
🟢 Detective ZachXBT also showed that the wallets manipulating the price of $JELLY received money from Binance
🟢 This event has sparked controversy as some critics claim Hyperliquid violates the spirit of decentralization in DeFi, even comparing it to the FTX incident.
🟢 Meanwhile, Binance and OKX quickly listed JELLY futures contracts, raising suspicions that the two major exchanges want to completely take down Hyperliquid
▶️ Ultimately, since this is Hyperliquid's home ground, anyone Long Short here must adhere to the exchange's rules. If you win a little, the exchange shares, but if you win too much and the exchange faces losses and wants to go bankrupt, then Reset.
#TrumpTariffs #JELLYJELLYFuturesAlert #VoteToListOnBinance #WhaleMovements #GameStopBitcoinReserve
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