The "Hunting Hyperliquid" incident that occurred early yesterday morning involved the meme coin Jelly Jelly, revealing the complex game between DEX and CEX, as well as potential vulnerabilities in the DeFi ecosystem.

#Binance contracts will list JELLYJELLY

1) The attacker opened a short position for Jelly Jelly on Hyperliquid while simultaneously selling a large amount of spot through another address to drive down the price, allowing the short position to gain floating profits.

Subsequently, the attacker withdrew the margin, triggering a liquidation, and transferred the position to be taken over by Hyperliquid's treasury (HLP).

After HLP took over the short position, the attacker started to drive up the price of Jelly Jelly, attempting to force HLP's short position to liquidate, in order to deplete the treasury's funds.