This is how other CEXs trapped Hyperliquid 🧵
A group of traders opened a BIG $4 to $6 Million short position on $JELLY at a price of $0.0095
Leverage upto 50X
Allegedly the same group of traders manipulated the price and dumped to get unrealised profit from the short trade > which allows them to withdraw their 2.5 Million + Margin
Due to this the short position went to Hyperliquid HLP Vault > This vault is designed to handle large liquidation 📉
But the game was something else 🫣
Allegedly the same group of traders started to buy $JELLY on spot to pump the price > Same time Binance OKX announced to list $JELLY
Due to this the price of $JELLY started to rally upside it's natural to understand that short position will be liquidated.
But here's the another catch> Now the short position was under Hyperliquid HLP Vault means Hyperliquid will face the liquidation
Plan worked > Hyperliquid lost $12 Million > If not stopped timely the loss could be as big as $240 Million
But how Hyperliquid stopped this is another controversy 📝
Actually Hyperliquid is Layer 1 and Decentralised Exchange but due to this event they forcefully delist $JELLY to save themselves through validators intervention.
People are curious how suddenly all the validators agreed to vote and delist the coin + settled all the orders > Means they'll are in the control of 1 Central entity !
If yes then where is the Decentralisation !
Now Let's Understand Binance OKX Involvement in this ⤵️
2 wallets involved in this manipulation have got the fund from their Binance OKX account > This clearly doesn't prove anything but people are speculating
At the same time > People are also asking why they've announced the listing at the same moment when HLP was facing HUGE liquidation threats !
+ Bitget CEO Gracy compare Hyperliquid with FTX 2.0
Bitmex Co-Founder Arthur Hayes also criticised this action of Hyperliquid
Hyperliquid Defence > Hyperliquid supports sharing their docs where they've mentioned about Auto- Deleveraging.
Criticism > People are afraid that Hyperliquid is also a CEX in the name of DEX > They can overturn your trades
That's all you need to know about this CEX vs DEX War
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