HyperLiquid Delists JELLY Meme Coin Amid $1 Million Exploit Attempt
HyperLiquid has delisted the Jelly my Jelly (JELLY) meme coin following suspicious market activity linked to a trader's exploit attempt, which could result in a potential loss of $1 million.
Key details include:
- A trader manipulated JELLY price movements and withdrew collateral before HyperLiquid could respond.
- The trader opened three accounts within five minutes: two with long positions totaling $4.05 million and one with a $4.1 million short position.
- HyperLiquid quickly froze accounts and delisted JELLY, preventing further exploitation.
- Unrealized profits and losses remain in restricted accounts, risking a $1 million loss unless withdrawals are allowed.
- The trader deposited $7.17 million and withdrew $6.26 million, leaving approximately $900,000 locked in accounts.
In response to the incident, HyperLiquid has faced criticism regarding its decentralization practices. ZachXBT pointed out inconsistencies, claiming the platform failed to act on previous incidents while intervening in this case.