Hyperliquid Under Attack Again, $200M Saved by “Pulling the Plug” | Timeline

Tonight, just after experiencing the "Insider Whale" long position liquidation event, Hyperliquid witnessed another position drama. A on-chain whale established a large JELLY short position on Hyperliquid, and the price of the JELLY token suddenly experienced a huge price swing, causing the whale's position to be liquidated. The Hyperliquid counterparty treasury took over the position and faced a situation of imminent liquidation, putting the entire protocol treasury at risk of being wiped out. Meanwhile, centralized exchanges (CEX) took advantage of the situation and swiftly listed the JELLY contract to carry out sniper attacks and hunting on Hyperliquid.

As of now, Hyperliquid has forcibly delisted the JELLY contract and liquidated 3.92 billion JELLY short positions at a favorable price of $0.0095 each (approximately $3.72 million), resulting in a profit of $703,000. At the same time, the HYPER price experienced a brief plunge, dropping from around $16 to $13 before rebounding, currently holding above $14. This action has also triggered intense discussions in the community regarding the competition between CEX and Perp DEX, as well as the centralization issues in on-chain protocols.

Note: This event is still unfolding, and BlockBeats will continue to monitor the situation.

03-26 22:12

JELLY Surges Over 500% in the Past 1 Hour, Hyperliquid Vault Takes Over Short Position with Unrealized Loss of Over $12 Million

According to market data, the meme coin JELLY surged by 515% in the past hour, currently trading at $0.034, with a market cap of $38.11 million; meanwhile, HYPE dropped by 17% in the past hour, currently trading at $14.37, a 10% drop compared to the time of "taking over the JELLY short position."

BlockBeats previously reported that the Hyperliquid Vault automatically liquidated a $5 million JELLY short position from a trader.

According to Hypurrscan data, as the JELLY coin price soared, the position currently has an unrealized loss of $12.368 million (entry price $0.01129).

03-26 22:23

A certain newly created address opened a JELLY long position on Hyperliquid, with floating profits exceeding $8 million at one point

According to hypurrscan data, a newly created address starting with 0x20e8 opened a 3x JELLY long position on Hyperliquid, with an entry price of $0.01129. The position's floating profits once exceeded $8 million, and currently stand at $5.58 million.

03-26 22:30

A JELLY whale holding 126 million tokens is manipulating the price, causing nearly $12 million in losses for HLP

According to Lookonchain monitoring, a whale holding 126 million JELLY (jellyjelly) tokens is currently manipulating the coin's price.

The address first sold off JELLY to drive down the price, resulting in HLP holding a passive short position of 398 million JELLY (approximately $15.3 million).

Subsequently, the address bought back JELLY, pushing up the price and causing HLP to incur nearly $12 million in losses.

03-26 22:41

Analyst: If JELLY rises to around $0.17, it will trigger a "liquidation" on the Hyperliquid Vault, liquidating $240 million

On-chain data analyst @ai_9684xtpa stated that Hyperliquid has taken over a $5 million jellyjelly short position due to automatic trader liquidation, which is currently at a floating loss of $10.63 million (approximately $6 million at the time of writing). If the counterparties push the price to around $0.17, the Hyperliquid Vault will face liquidation and lose the $240 million it currently holds.

03-26 23:10

KOL "Suggests" Binance to List JELLY to Liquidate Hyperliquid, CZ Responds with "Noted"

Crypto KOL CryptoSkanda (@thecryptoskanda) posted on social media, "suggesting" Binance to list JELLY spot trading or merely stating consideration for JELLY trading to leverage his influence to further pump JELLY's price to liquidate Hyperliquid, a competitor.

In response, Binance co-founder CZ replied, "Okay, noted."

At the time of writing, JELLY is currently priced at $0.0328, with only a 24% increase since CZ's response, failing to have a significant impact on the price (compared to a 500% pump earlier tonight).

BlockBeats previously reported that a trader who had a short position on JELLY was automatically liquidated, resulting in Hyperliquid Vault taking over a $5 million JELLY short position, which is currently at a $9.02 million loss.

According to on-chain analyst @ai_9684xtpa's analysis, if the opposing party pushes the JELLY price up to around $0.17, the Hyperliquid Vault will face liquidation and lose the entire $240 million it currently holds.

03-26 23:13

OKX to List JELLYJELLY Perpetual Contract

According to official news, OKX announced that it will list the JELLYJELLY perpetual contract.

03-26 23:18

Binance to Launch JELLYJELLY U Inverse Perpetual Contract

According to official sources, Binance will launch JELLYJELLY and MAVIA U Perpetual Contracts.

03-26 23:21

Analyst: JELLY Short Position Liquidation Could Reach Up to $50 Million, Liquidation Price $0.141

On-chain data analyst Ember wrote that this JELLY event could at most liquidate the address currently holding JELLY short positions, without affecting the other two HLP Treasury strategy addresses.

The liquidation address holds $50 million, and the liquidation price of the current 398 million JELLY short position is $0.141. The current JELLY price is $0.033. To "burst" the liquidation address, JELLY would need to rise over 3 times.

03-26 23:21

Hyperliquid Has Delisted JELLY

According to market sources, after announcing the launch of the JELLY contract on OKX and Binance, Hyperliquid chose to delist JELLY.

03-26 23:24

After Delisting JELLY, HYPE Experienced a Short-Term Rise of About 20%

Market data shows that after Hyperliquid announced the launch of the JELLY contract on OKX and Binance and then delisted JELLY, HYPE experienced a short-term rise of about 20%, with the price temporarily at $14.3.

03-26 23:26

JELLY Experienced a Short-Term 60% Decline

Due to Hyperliquid's delisting of JELLY, JELLY experienced a short-term 60% drop, currently priced at $0.0248.

03-26 23:29

Hyperliquid settled a JELLY short position at $0.0095 without any loss of funds

According to market reports, Hyperliquid delisted JELLY and settled a taken short position at the price of $0.0095 (well below market price), without any loss of funds.

03-26 23:47

Hyperliquid Response: Committee voted to delist JELLY, user losses to be fully compensated by the foundation

Hyperliquid released a response on Discord stating that upon discovering suspicious market activity, the validator committee voted to delist the JELLY perpetual contract.

All user losses, excluding tagged addresses, will be fully compensated by the Hyper Foundation. Compensation will be automatically executed based on on-chain data in the coming days, with no need to submit a work order. The specific implementation plan will be detailed in future announcements. Similar to other public chains, validators frequently need to collectively deliberate and take resolute actions to maintain network integrity. Hyperliquid will prioritize enhancing the robustness and transparency of the voting system.

Recordedly, HLP (Hyperliquid Protocol) currently has a 24-hour net loss of approximately $700,000 USDC. Technical improvements will be advanced in sync, and the experience of this event will contribute to a more refined network. More details will be announced soon.

03-26 23:54

Arthur Hayes: Hyperliquid is not decentralized, HYPE will return to square one

Arthur Hayes posted on social media stating that Hyperliquid failed to handle the JELLY event, which is fundamentally not decentralized. Don't even think traders care about this at all. He dares to bet that HYPE will soon return to square one.

03-26 23:58

Hyperliquid Initiates "Unplug the Ethernet Cable" Liquidation, Profiting $703,000 from JELLY Short Position

According to Lookonchain monitoring, before delisting JELLY, Hyperliquid liquidated 3.92 billion JELLY at a price of $0.0095 (approximately $3.72 million) without any loss, instead profiting $703,000.

03-27 00:16

CZ Reiterates "DEX is Inferior to CEX" in New Post

In a social media post, CZ stated: "I know I'm not that smart. I admit it when I don't understand, and often feel that those amazing people must have some tricks up their sleeves that I don't know to do things I can't."

However, occasionally, I find: the most basic rules still apply."

It is worth noting that CZ's tweet quoted a previous tweet about "DEX is Inferior to CEX." CZ specifically explained that, to avoid confusion, the tweet was unrelated to the HL incident. It was his previous experience attempting to use the AstherusHub on the BSC chain, a project in Labs' portfolio. They do not display liquidation prices and use an Auto-Deleveraging (ADL) mechanism, so similar issues to today's event will not occur.

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