From Cointelegraph

March 26, 2025 10:58 PM:

A trader on Hyperliquid is potentially down almost $1 million after manipulating the system to profit from price movements, leading to the freeze and delisting of the Jelly my Jelly (JELLY) memecoin. The trader opened accounts with long and short positions totaling $8.25 million to drain funds from Hyperliquid. Source: Arkham. When the price of Jelly surged, the $4 million short position entered liquidation, but the trader withdrew collateral from other accounts. Hyperliquid eventually closed the Jelly token market, costing the trader $4,000. The trader withdrew $6.26 million, but at least $1 million remains in the accounts. Source: Arkham. Hyperliquid delisted perpetual futures tied to JELLY token due to suspicious market activity. Other traders have used similar tactics on the platform. On March 14, Hyperliquid increased margin requirements after losing millions of dollars during an Ether liquidation. Bitget CEO criticized Hyperliquid’s handling of the incident involving JELLY token. A whale trader liquidated a $200 million Ether long position, causing HLP to lose $4 million. Traders are targeting whales on the platform to liquidate prominent leveraged positions. Magazine: What are native rollups? Full guide to Ethereum’s latest innovation.

Read more at Cointelegraph: Hyperliquid JELLY ‘exploiter’ could be down $1M, says Arkham