The Jelly futures alert is creating quite a buzz. It all started when a trader self-liquidated their position, causing Hyperliquid Vault to open a $5 million short position on JellyJelly ($JELLY).¹ This led to a massive short squeeze, propelling $JELLY's price up by 429% in just one hour.
As a result, Hyperliquid Vault found itself in a precarious situation with unrealized losses exceeding $10.5 million. The situation is being described as a "Futures War" between Hyperliquid Vault and traders betting on $JELLY's surge.
*Key Concerns:*
- _Market Manipulation_: The price action surrounding $JELLY suggests targeted efforts to push the token's value higher, forcing Hyperliquid Vault's liquidation.
- _Centralization Concerns_: Hyperliquid's decision to delist Jelly perps has raised concerns about its claims of decentralization.² ³
- _Financial Risks_: If $JELLY reaches $0.17, Hyperliquid Vault will face complete liquidation, resulting in a $240 million loss.
