Suspicious whales orchestrated a price manipulation of the JELLY token on the Hyperliquid DEX, putting the platform at risk of total liquidation. Amidst the chaos, Binance and OKX decided to list JELLY, raising suspicions of a coordinated attack against their rising competitor. Delve into the depths of this crypto drama that could hide a war between cryptocurrency giants.
The DeFi project Hyperliquid (HYPE) barely avoided a catastrophic liquidation due to coordinated price manipulation of the memecoin JELLY on its platform. Wallets connected to major centralized exchange platforms like Binance and OKX reportedly heavily shorted JELLY, causing a temporary 80% price drop.
At its peak, this manipulation exposed Hyperliquid’s integrated market-making protocol (HLP) to over $12 million in potential losses on these short positions. Such a loss could have rendered the platform insolvent.
Fortunately, Hyperliquid acted swiftly by delisting the JELLY token and closing the at-risk positions. Despite a brief dip in its HYPE token to below $13, the platform survived this large-scale speculative attack.
While chaos unfolded on Hyperliquid, the two giants Binance and OKX surprisingly announced on their respective platforms the listing of perpetual futures contracts for… the JELLY token! A rather suspicious coincidence fueling speculations of a coordinated attack aimed at toppling Hyperliquid, now an essential DEX.
ZachXBT, a blockchain sleuth, traced the origins of the manipulation to two wallets. These wallets received funds from Binance, OKX, as well as other platforms like MEXC and Bybit, just before launching their assault on JELLY.
“It’s interesting to note that while Binance publicly supports Bybit after the $1 billion hack, it actively sought to destroy Hyperliquid by listing Jelly.” stated Jason Choi, VC and co-founder of Tangent Capital.
Another coincidence? Or a real collusion among major players in the industry to try and eliminate a disruptive decentralized rival challenging their model? After this scandal, distrust towards large centralized platforms is certainly warranted.
This incident exemplifies how some entities are willing to engage in a ruthless war within the crypto space. The neutrality and transparency of DEXes like Hyperliquid are becoming crucial in the face of traditional monopolies. Monitoring the murky connections between major centralized platforms and the origins of potential manipulations seems more necessary than ever for the community.
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
DISCLAIMER
This article is for informational purposes only and should not be considered as investment advice. Trading cryptocurrencies involves risks, and it is important not to invest more than you can afford to lose.
InvestX is not responsible for the quality of the products or services presented on this page and cannot be held liable, directly or indirectly, for any damage or loss caused by the use of any product or service featured in this article. Investments in crypto assets are inherently risky; readers should conduct their own research before taking any action and invest only within their financial means. This article does not constitute investment advice.
Risk Warning : Trading financial instruments and/or cryptocurrencies carries a high level of risk, including the possibility of losing all or part of your investment. It may not be suitable for all investors. Cryptocurrency prices are highly volatile and can be influenced by external factors such as financial, regulatory, or political events. Margin trading increases financial risks.
CFDs (Contracts for Difference) are complex instruments with a high risk of rapid capital loss due to leverage. Between 74% and 89% of retail investor accounts lose money when trading CFDs. You should assess whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Before engaging in financial or cryptocurrency trading, you must be fully informed about the associated risks and fees, carefully evaluate your investment objectives, level of experience, and risk tolerance, and seek professional advice if needed. InvestX.fr and the InvestX application may provide general market commentary, which does not constitute investment advice and should not be interpreted as such. Please consult an independent financial advisor for any investment-related questions. InvestX.fr disclaims any liability for errors, misinvestments, inaccuracies, or omissions and does not guarantee the accuracy or completeness of the information, texts, graphics, links, or other materials provided.
Some of the partners featured on this site may not be regulated in your country. It is your responsibility to verify the compliance of these services with local regulations before using them.
