#BinanceEarnYieldArena First, they dumped a large amount of $JELLY onto the market. This action caused the token price to plummet due to supply exceeding demand, especially with a low liquidity token like $JELLY (which is known as a memecoin with an initial market capitalization of only about 20 million USD). As the price fell, HLP – Hyperliquid's automatic liquidity provision mechanism – was forced to take over a passive short position of up to 398 million $JELLY, equivalent to 15.3 million USD at that time. This happened because Hyperliquid's system is designed to ensure liquidity and automatically handle liquidated positions.