A cat attempted to profit through manipulations with the meme coin JELLYJELLY.
This is reported by Finway
The Hyperliquid platform decided to delist this asset to reduce risks.
The market’s reaction and accusations of centralization have posed a threat to the project’s reputation.
Incident on Hyperliquid
On March 26, 2025, another case of manipulation involving the HLP Vault mechanism occurred on the Hyperliquid platform. An anonymous trader triggered the liquidation of a margin short position on the Jelly-My-Jelly (JELLYJELLY) token, forcing the platform to assume loss-making obligations.
In response to the trader’s suspicious actions, the platform forcibly closed the JELLYJELLY market, blocking a portion of the user’s unrealized profit. The potential losses for HLP reached $12 million.
Repetition of the Incident
This is the second major incident with Hyperliquid in March 2025 related to manipulations of the HLP mechanism, resulting in significant financial losses. The Incrypted editorial team has thoroughly analyzed the situation and the market’s reaction to this case.