HyperLiquid Exploiter Eyes $1 Million Loss

by

HyperLiquid’s Jelly Jiggle: A $1 Million Loss on the Line 🤯

It’s not every day you see a trader’s plans go up in a puff of smoke, but that’s exactly what happened to the poor chap behind the JELLY meme coin exploit. Just as HyperLiquid delisted the Jelly my Jelly (JELLY) meme coin, the trader’s eyes widened in horror as he realized he was staring down the barrel of a $1 million loss 🤑.

It seems our intrepid trader had a bright idea to manipulate the JELLY price movements and withdraw the collateral before HyperLiquid’s mechanism could respond. But, as the saying goes, “pride comes before a fall” – and in this case, it was a $7.17 million deposit into three separate HyperLiquid accounts within a mere five minutes 🕰️.

Hyperliquid just got exploited. What happened?A trader deposited $7.167M on 3 separate Hyperliquid accounts within 5 minutes of each other. He then made leveraged trades on an illiquid coin, JELLYJELLY.However, he ended up losing money, and is down almost $1M unless…

— Arkham (@arkham) March 26, 2025

Read more$70 million in 24 hours: Can Ethereum crack $4,000 thanks to whales?

But, as the great philosopher, Dolly Parton, once said, “Working 9 to 5, what a way to make a living” – and in this case, the trader’s living was about to take a drastic turn 😱. HyperLiquid’s quick thinking and decisive action (or lack thereof, depending on how you look at it) froze the accounts and delisted the JELLY token, leaving the trader with a rather… interesting… situation 🤦‍♂️.

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.Assuming he can withdraw this at some point in the future, his actions on Hyperliquid have…

— Arkham (@arkham) March 26, 2025

And now, the plot thickens like a good bowl of soup 🍲. HyperLiquid has faced criticism for its lack of decentralization, with some questioning whether the platform’s governance structure is a bit too… centralized 🤔. Ah, but that’s a story for another time, my friends 👀.

HyperLiquid’s Governance: A Decentralized Dilemma? 🤔

It seems the good people at HyperLiquid are having a bit of an identity crisis 🤷‍♂️. On one hand, they’re trying to be the good guys by freezing accounts and delisting tokens, but on the other hand, they’re being accused of being a bit too… controlling 🤥. Ah, the perils of being a decentralized platform, eh? 🤣

either:– stay consistent and do something when it’s possible for major incidents -be actually decentralized and do nothing – create a mechanism that discourages such actors from using the protocol in the first place (see Railgun PPOI)

— ZachXBT (@zachxbt) March 26, 2025

And so, the great debate rages on, my friends 🤔. Will HyperLiquid find a way to balance its desire for decentralization with its need to protect its users? Only time will tell, but in the meantime, we’ll just have to sit back, relax, and enjoy the show 🍿.

Read More

2025-03-27 18:41