The "Hunting Hyperliquid" incident that occurred yesterday at #币安合约将上线JELLYJELLY involved the meme coin Jelly Jelly, revealing the complex game between DEX and CEX, as well as potential vulnerabilities in the DeFi ecosystem.
1) The attacker opened a short position on Jelly Jelly on Hyperliquid while simultaneously dumping a large amount of spot through another address to drive down the price, thus allowing the short position to gain unrealized profits.
Subsequently, the attacker withdrew the margin, triggering a liquidation, and transferring the position to be taken over by Hyperliquid's treasury (HLP).
After HLP took over the short position, the attacker started to pump up the price of Jelly Jelly, attempting to force the HLP's short position to liquidate, exhausting the treasury's funds.