#JELLYJELLYFuturesAlert

🆘 Hyperliquid encounters a new disaster - Escaping loss by a hair's breadth

Hyperliquidity Provider (HLP) continues to be a victim in a well-orchestrated price manipulation by a whale holding 126M JELLY.

1️⃣ The whale liquidates JELLY → price drops

2️⃣ The whale goes to Hyperliquid to open a short position on JELLY and then withdraws all margin, forcing HLP to take over a short position worth $4.5M at an extremely unfavorable price

3️⃣ The whale buys back JELLY, simultaneously reopening a long position on this token right on Hyperliquid → price rises

👉 As a result, at one point the whale made $8M from the long position on JELLY while HLP incurred a $12M loss from the short position on JELLY, raising concerns that if the price increases to ~$0.16, HLP would burn $230M of the fund.

4️⃣ The drama escalates as OKX and Binance prepare to launch JELLY futures contracts, causing the token price to surge...

5️⃣ However, Hyperliquid closed the short position at $0.0095 and delisted JELLY – not losing a single penny and avoiding the risk of HLP fund depletion after 1 hour of holding the loss

The final result after the incident, the 24h PNL of HLP Vault turned from negative to +$700K. Hyper Foundation also committed to compensating affected users due to the unexpected delisting, except for addresses suspected of manipulation.