#JELLYJELLYFuturesAlert #JELLYJELLYFuturesAlert

Whale Selling $JELLY: $12M Loss for HLP & Hyperliquid Delisting Drama

A crypto whale sold $4.85M worth of $JELLY, causing a dramatic loss of $12M for Hyperliquid’s Hyperliquidity Provider (HLP). The sequence of events is as follows: the whale dropped the price by selling a large amount of $JELLY, trapping HLP in a short position. As the whale bought back the tokens at a lower price, a short squeeze occurred, pushing the price back up. Hyperliquid then delisted $JELLY, closing the position at $0.0095, locking in a profit of $700K for themselves.

This incident highlights the risks of market manipulation on low-cap tokens, emphasizing the need for better protections on exchanges and greater awareness for traders. In a volatile market, especially with low liquidity tokens, it is crucial to employ strategies such as stop-loss and have an exit plan.

Key Points:

Whale manipulation can have devastating effects on the market.

Exchanges should enhance protections for traders.

Always remain vigilant and practice risk management when dealing with volatile assets.