{"id":22487,"date":"2025-03-27T18:26:26","date_gmt":"2025-03-27T16:26:26","guid":{"rendered":"https:\/\/forklog.com\/en\/hyperliquid-whales-manipulation-ends-in-losses-exact-figures-unknown\/"},"modified":"2025-03-27T18:26:26","modified_gmt":"2025-03-27T16:26:26","slug":"hyperliquid-whales-manipulation-ends-in-losses-exact-figures-unknown","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/hyperliquid-whales-manipulation-ends-in-losses-exact-figures-unknown\/","title":{"rendered":"Hyperliquid Whale&#8217;s Manipulation Ends in Losses, Exact Figures Unknown"},"content":{"rendered":"<p>A trader exploiting the liquidation mechanism on the decentralized exchange Hyperliquid in perpetual contracts for the JELLYJELLY token retains a balance of approximately $900,000 on the platform.<\/p>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">In total, the exploiter deposited $7.17M to 3 Hyperliquid accounts and withdrew $6.26M, with ~$900K balance on Hyperliquid across two accounts which he is currently unable to withdraw.<\/p>\n<p>Assuming he can withdraw this at some point in the future, his actions on Hyperliquid have\u2026 <a href=\"https:\/\/t.co\/nq2IROQHjD\">pic.twitter.com\/nq2IROQHjD<\/a><\/p>\n<p>\u2014 Arkham (@arkham) <a href=\"https:\/\/twitter.com\/arkham\/status\/1905003334488191005?ref_src=twsrc%5Etfw\">March 26, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Even if he manages to withdraw the assets, the loss would amount to about $4,000, experts at Arkham noted.<\/p>\n<p>The investor opened two long positions in the token worth $2.15 million and $1.9 million. A short position of $4.1 million served as a hedge.<\/p>\n<p>A ~400% pump in JELLYJELLY&#8217;s price triggered the liquidation of the short, but due to its volume, the assets were transferred to the Hyperliquidity Provider Vault.<\/p>\n<p>Meanwhile, the manipulator continued to withdraw collateral from the longs, having approximately $11 million in unrealized profits.<\/p>\n<p>The exchange <a href=\"https:\/\/u1f987.com\/en\/news\/hyperliquid-delists-contract-amid-price-manipulation-concerns\">halted trading<\/a> of JELLYJELLY contracts by a decision of the validators due to &#8220;suspicious market activity.&#8221; The whale managed to withdraw about $6.2 million.<\/p>\n<h2 class=\"wp-block-heading\">Community Questions Hyperliquid&#8217;s Decentralized Nature<\/h2>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cThe way Hyperliquid handled the incident was immature, unethical, and unprofessional, leading to user losses and raising serious doubts about its commitment to principles. Despite positioning itself as an advanced DEX with an innovative approach, it operates more like an offshore <span data-descr=\"centralized exchange\" class=\"old_tooltip\">CEX<\/span> without <span data-descr=\"know your customer\/anti-money laundering\" class=\"old_tooltip\">KYC\/AML<\/span>, facilitating flows of illicit funds and unscrupulous players,\u201d commented Bitget CEO Gracy Chen.<\/p>\n<\/blockquote>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\"><a href=\"https:\/\/twitter.com\/hashtag\/Hyperliquid?src=hash&#038;ref_src=twsrc%5Etfw\">#Hyperliquid<\/a> may be on track to become <a href=\"https:\/\/twitter.com\/hashtag\/FTX?src=hash&#038;ref_src=twsrc%5Etfw\">#FTX<\/a> 2.0.<\/p>\n<p>The way it handled the <a href=\"https:\/\/twitter.com\/search?q=%24JELLY&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$JELLY<\/a> incident was immature, unethical, and unprofessional, triggering user losses and casting serious doubts over its integrity. Despite presenting itself as an innovative decentralized exchange with a\u2026<\/p>\n<p>\u2014 Gracy Chen @Bitget (@GracyBitget) <a href=\"https:\/\/twitter.com\/GracyBitget\/status\/1904941729834557453?ref_src=twsrc%5Etfw\">March 26, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>She noted:<\/p>\n<ul class=\"wp-block-list\">\n<li>the forced closure of positions created a dangerous precedent;<\/li>\n<li>Hyperliquid&#8217;s product design contains critical flaws in the form of mixed vaults and the absence of limits, exposing users to systemic risk;<\/li>\n<li>the platform could be subject to manipulation in other altcoins, theoretically threatening \u201cthe next industry catastrophe.\u201d<\/li>\n<\/ul>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cHyperliquid could become the next FTX,\u201d concluded Chen.<\/p>\n<\/blockquote>\n<p>In 2023, the exchange&#8217;s founder Jeff Yan criticized the approach of industry venture investors, who, in his view, support \u201cdubious projects\u201d like LUNA.<\/p>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">1\/ Huge respect for Dragonfly continuing to invest in the bear market.<\/p>\n<p>But I&#8217;m morally obliged to call out sketchy projects gaining momentum.<\/p>\n<p>As a community we must preempt large scale implosions like <a href=\"https:\/\/twitter.com\/hashtag\/FTX?src=hash&#038;ref_src=twsrc%5Etfw\">#FTX<\/a> or <a href=\"https:\/\/twitter.com\/hashtag\/LUNA?src=hash&#038;ref_src=twsrc%5Etfw\">#LUNA<\/a> that set the industry back years<\/p>\n<p>Bitget may be the next FTX ? <a href=\"https:\/\/t.co\/R6JkTstXpV\">https:\/\/t.co\/R6JkTstXpV<\/a><\/p>\n<p>\u2014 jeff.hl (@chameleon_jeff) <a href=\"https:\/\/twitter.com\/chameleon_jeff\/status\/1643610595848261632?ref_src=twsrc%5Etfw\">April 5, 2023<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The entrepreneur directly pointed to Bitget as the next \u201cpotential FTX.\u201d<\/p>\n<p>The price of Hyperliquid&#8217;s token (HYPE) fell from $16.3 to $13.5 amid the incident. It then recovered to around $14.4 (<a href=\"https:\/\/www.coingecko.com\/en\/coins\/hyperliquid\">CoinGecko<\/a>).<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cLet&#8217;s stop pretending Hyperliquid is decentralized. And then let&#8217;s stop pretending traders care. I bet HYPE will soon return to its original position because degens will degen,\u201d wrote BitMEX co-founder and former CEO Arthur Hayes.<\/p>\n<\/blockquote>\n<p>Users online responded to the incident of the exchange&#8217;s forced closure of positions by reworking a well-known internet meme.<\/p>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">Current state of Hyperliquid <a href=\"https:\/\/t.co\/IOSiisfACW\">pic.twitter.com\/IOSiisfACW<\/a><\/p>\n<p>\u2014 MoneyPrinterGoBrrr (@printer_brrr) <a href=\"https:\/\/twitter.com\/printer_brrr\/status\/1904965765926690925?ref_src=twsrc%5Etfw\">March 26, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>In their view, Hyperliquid&#8217;s actions do not align with the principles of decentralization.<\/p>\n<p>Experts at 10x Research <a href=\"https:\/\/u1f987.com\/en\/news\/hyperliquid-opens-the-door-to-a-crowd-led-whale-hunt-says-10x-research\">noted<\/a> that the platform&#8217;s transparency enabled a \u201cpublic hunt\u201d on leveraged whales to liquidate their positions.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A trader exploiting the liquidation mechanism on the decentralized exchange Hyperliquid in perpetual contracts for the JELLYJELLY token retains a balance of approximately $900,000 on the platform. In total, the exploiter deposited $7.17M to 3 Hyperliquid accounts and withdrew $6.26M, with ~$900K balance on Hyperliquid across two accounts which he is currently unable to withdraw. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":22486,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1267,787,1156],"class_list":["post-22487","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-cryptocurrency-trading","tag-dex","tag-institutional-investors-and-whales"],"aioseo_notices":[],"amp_enabled":true,"views":"34","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/22487","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=22487"}],"version-history":[{"count":0,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/22487\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/22486"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=22487"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=22487"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=22487"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}