The entrepreneur behind the recent “weak -suspected market activity” on Hyperliquid that led to the firing and removal of my jelly jelly (jelly) memecoin potentially dropped by nearly $ 1 million from their actions.
Blockchain Analytics Firm Arkham Intelligence Says In a March 26 post in X that the businessman attempted to manipulate the system to earn from price movements, the collateral removal before the hyperliquid demolition system was reached.
The entrepreneur opened three accounts in five minutes of each, two with $ 2.15 million and $ 1.9 million length position, and the third A $ 4.1 million short, in Cancel the long positionAccording to Arkham in a post-mortem report.
“He was allowed to develop leverage in an attempt to deplete funds from Hyperliquid,” Arkham said.
Source: Arkham
When the jelly price was pumped by more than 400%, the $ 4 million short position entered the extermination, but the open short did not rush it immediately because it was huge and instead passed to the hyperliquidity provider Vault (HLP), which should be liquid position.
At the same time, the businessman withdrew collateral from the other two accounts while there was a “7-figure positive PNL to withdraw,” Arkham said.
However, “exploitation” quickly hit a wall when accounts, which still have millions in unstoppable income and loss, is restrained to reduce orders only, forcing them Sell tokens To the first market account to recover some of the funds.
Source: Arkham
Hyperliquid eventually closed the Jelly token Market at a price of 0.0095, the same price as a short trade trading, which “located in all floating PNLs in the first two exploitable accounts.”
In total, Arkham said the entrepreneur withdrew $ 6.26 million, but at least $ 1 million was still in accounts.
“Thinking that he could withdraw it in the future, his actions on Hyperliquid would cost him a total of $ 4,000. If he didn’t do it, he faced the loss of nearly $ 1 million,” said Blockchain Analytics firm.
Hyperliquid has Delisted Perpetual Futures tied to Jelly Tokenciting evidence of weak -suspected market activity.
Other merchants use similar tactics
This is not the first time Hyperliquid has issues like this. On March 14th, the hyperliquid increased margin requirements for entrepreneurs After losing its pool of liquidity to millions of dollars during a massive ether (Eth) Destruction.
Related: Bitget CEO slams hyperliquid’s handling of “weak -suspected” incident involving jelly token
A whale trader intentionally Liquidated a more than $ 200 million ether the long position On March 12, the HLP caused a loss of $ 4 million while the trade was not allowed.
The entrepreneurs have also had Starts hunting whales on the platform.
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