A trader had a $5 million short position on JELLY that got liquidated, and the liquidity pool hard bought it. Within half an hour, JELLY doubled, and the floating loss skyrocketed to $13.24 million. The comments section exploded, with someone shouting: "This isn’t an accident; someone is pulling strings!" Looking again, Hyperliquid's TVL plummeted to $258 million, with HYPE dropping 20% in a day, in a free fall.
Isn't Hyperliquid supposed to be a top-tier DEX? Isn’t the liquidation mechanism meant to protect the platform? Instead, it turned into an ATM? If JELLY pushes down to $0.17, the liquidity pool of $240 million might blow up directly. Previously, the officials confidently claimed to reduce leverage and increase margin, but the loopholes are as fragile as paper—just a poke and they break.
This isn't just Hyperliquid's fault; the entire DeFi space should be alert. High leverage + automated liquidation looks cool, but when it gets targeted by big whales, it's a ticking time bomb. People on X are already saying that global traders are teaming up to hunt whales, specifically targeting the liquidity pools. Market confidence has collapsed, TVL has shrunk, and if Hyperliquid doesn’t change its mechanism, it’s likely to cool down soon.
To be honest, I’m a bit disappointed. DeFi was originally a symbol of freedom; who doesn’t love the allure of high returns? But reality has slapped us hard— the price of freedom is that some people can freely harvest you.
$ETH **Recent Market Trends of Ethereum (ETH)** The recent price fluctuations of Ethereum have sparked quite a discussion📈. As the core of blockchain technology, Ethereum's smart contract functionality supports many decentralized applications, from DeFi to NFTs, being ubiquitous. The recent upgrade to Ethereum 2.0 has improved transaction efficiency, but the issue of transaction fees remains a hot topic💸. For technology enthusiasts, a deeper study of its architecture may yield more insights; meanwhile, investors need to closely monitor market dynamics and act cautiously. Regardless, the influence of Ethereum in the blockchain field cannot be ignored and is worth continued attention! #Ethereum #Blockchain #Cryptocurrency
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