The trader behind recent "suspicious market
activity" on Hyperliquid that led to the freeze and
delisting of the Jelly my Jelly (ELLY) memecoin is
potentially down almost $1 million from their
actions.
Blockchain analytics firm Arkham Intelligence said
in a March 26 post to X that the trader attempted
to manipulate the system to profit from price
movements, withdrawing collateral before
Hyperliquid's liquidation system could catch up.
The trader opened three accounts within five
minutes of each other, two with $2.15 million and
$1.9 million long positions, and the third a $4.1
million short, to cancel out the long positions,
according to Arkham in a post-mortem report.
'This allowed him to build up leverage in an
attempt to drain funds from Hyperliquid,'
Arkham said.