JELLY Chaos: Binance, OKX, and Hyperliquid’s Drama Unpacked

Right, so JELLY—yes, the token, not the dessert—went absolutely bonkers this week. 🍬 After a 400%+ price pump (because, of course, someone decided to manipulate the market on Hyperliquid), Binance and OKX swooped in like vultures to list JELLY futures. Meanwhile, Hyperliquid, looking like a deer in headlights, delisted the token’s perps and is now facing a full-blown existential crisis over centralization. Drama, much? 😬

Here’s the tea: Some trader on Hyperliquid (HYPE, because irony) decided to play God with Jelly Jelly (JELLY). After the whole mess, Hyperliquid delisted JELLY and reimbursed users, which is nice, I guess. But then Binance and OKX, smelling blood in the water, listed JELLY futures faster than you can say “speculative trading.” 🤑

On March 26, JELLY went from $0.0095 to $0.050—a 426% increase. Because nothing says “stable market” like a token that swings harder than a pendulum. Both exchanges are probably rubbing their hands together, thinking about all those sweet, sweet trading fees. 💸

But wait, there’s more! Some people think Binance and OKX aren’t just in it for the fees—they’re trying to bury Hyperliquid. One user even compared it to Binance’s alleged role in FTX’s collapse, saying it “rewrites the history of what happened to FTX.” Ouch. 🪦

Oh, and guess what? Blockchain investigator ZachXBT pointed out that the two accounts linked to the manipulation were funded via Binance. Coincidence? Probably not. 🕵️‍♂️

Meanwhile, JELLY’s price has settled at $0.020, according to CoinGecko. So, if you’re holding JELLY, maybe don’t check your portfolio just yet. 🙈

The Manipulation Incident

According to Arkham Intelligence, the trader opened three accounts: two with long positions worth $2.15 million and $1.9 million, and a third with a $4.1 million short position. Total? $7.17 million. Because why not go big or go home? 🏦

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

Then, the trader aggressively bought JELLY on decentralized exchanges. Since liquidity on DEXes is about as reliable as a chocolate teapot, the price shot up by over 400%. The $4.1 million short position was supposed to be liquidated, but it was too big to execute immediately, so it was transferred to HyperLiquid’s automated market-making vault. Meanwhile, the trader withdrew $6.26 million from their other two accounts. Smooth move, right? 🕶️

HyperLiquid eventually caught on and restricted the trader’s accounts to reduce-only mode, freezing withdrawals. The trader then started selling JELLY to recover some funds, but HyperLiquid closed the market at $0.0095, wiping all floating PnL on the first two accounts. Brutal. 💥

According to Abhi, founder of Web3 company AP Collective, if Hyperliquid hadn’t closed the position, it would’ve faced full liquidation if JELLY reached a $150M market cap. Yikes. 🚨

After the incident, Hyperliquid delisted JELLY perpetuals, sparking outrage from the crypto community over centralization concerns. Arthur Hayes summed it up perfectly:

$HYPE can’t handle the $JELLY

Let’s stop pretending hyperliquid is decentralised

And then stop pretending traders actually give a fuck

Bet you $HYPE is back where is started in short order cause degens gonna degen

— Arthur Hayes (@CryptoHayes) March 26, 2025

Echoing his sentiment, Bitget CEO Gracy Chen said:

“The decision to close the $JELLY market and force settlement of positions at a favorable price sets a dangerous precedent,” Chen said. “Trust—not capital—is the foundation of any exchange […] and once lost, it’s almost impossible to recover.”

So, there you have it. JELLY, Hyperliquid, Binance, and OKX—all in one giant, messy crypto soap opera. 🍿

2025-03-27 13:09

The Manipulation Incident

Read More