#JELLYJELLYFuturesAlert

"Exploiter" of JELLY from Hyperliquid may have lost 1 million dollars, according to Arkham.

The trader behind the recent "suspicious" activity on Hyperliquid still has nearly one million dollars trapped on the platform, according to Arkham Intelligence.

The trader behind the recent "suspicious market activity" on Hyperliquid, which led to the freezing and removal of the memecoin Jelly my Jelly (JELLY), may have lost nearly 1 million dollars due to their actions.

The blockchain analysis firm Arkham Intelligence said in a post on March 26 on X that the trader attempted to manipulate the system to profit from price movements, withdrawing collateral before Hyperliquid's liquidation system could reach them.

The trader opened three accounts within a span of five minutes, two with long positions of 2.15 million dollars and 1.9 million dollars, and the third with a short position of 4.1 million dollars, to offset the long positions, according to Arkham in a post-mortem report.

"This allowed them to accumulate leverage in an attempt to drain funds from Hyperliquid," Arkham said.

When the price of Jelly soared by more than 400%, the 4 million dollar short position went into liquidation, but the open short position was not immediately liquidated because it was too large and instead went to the Hyperliquidity Provider Vault (HLP), which is supposed to liquidate the position.

At the same time, the trader withdrew collateral from the other two accounts while having "a positive seven-figure PnL to withdraw," Arkham said.

However, the "exploiter" quickly ran into a hurdle when the accounts, which still had millions in unrealized gains and losses, were restricted to only reduction orders, forcing them to sell the tokens in the first account in the market to recover some of the funds.