This message is forwarded, and it's unclear whether James really did this. The key is that this method is quite common; many times, what we see is just the tip of the iceberg.

On June 6, Mirror Tang (@mirrorzk), the founder of Web3 security company Salus, posted on social media stating that since March of this year, Chinese law enforcement has cracked three cases of cryptocurrency money laundering using HyperLiquid. The operation method involves using Hyperliquid's high leverage liquidation mechanism to hedge and clean up illegal gains, creating liquidation losses on HyperLiquid while simultaneously profiting from reverse positions on centralized trading platforms, completing the money laundering process. Salus will publish a research article in cooperation with law enforcement agencies to officially disclose this information in the future.

Mirror Tang also pointed out that the structure of this strategy is highly similar to the operation path of the whale James Wynn, who recently opened high-leverage contracts and ultimately withdrew $100 million in profits. Mirror Tang urged Hyperliquid co-founder Jeff to pay attention to this issue, stating that if the current lack of risk control measures cannot be resolved, they will face a high risk of regulatory intervention.