Decentralized cryptocurrency (DEX) exchanges continue to challenge the dominance of centralized platforms, even as a recent $ 6.2 million exploitation of Hyperliquid features DEX infrastructure risks.
A cryptocurrency Whale made somehow $ 6.26 million revenues In jelly my jelly (jelly) memecoin by exploiting the hyperliquid extermination parameters, Cointelegraph reported on March 27.
The exploitation was the second major platform incident in March, coingecko co-founder Bobby Ong said.
“$ Jellyjelly is the more well -known attack where we see Binance and OKX lists, which draw accusations of coordinating an attack against Hyperliquid,” Ong said in an April 3 x x PostAdding:
“Obviously the Cexes feel the threat of the Dexs, and they will not be seen sharing in the market without putting a fight.”
The Dex Growth Reshapes Derivatives Market
Hyperliquid is the eighth-largest largest continuous futures exchange by volume throughout both centralized and decentralized exchanges. It puts the “top of some well -known OGs such as HTX, Kraken and Bitmex,” says Ong, citing a research on April 4 Report.
Related: Bitcoin up to $ 110k Next, Hyperliquid Whale Bags $ 6.2M ‘Short’ Exploit: Finance Re -defined
The growing trade of hyperliquid The quantity begins to cute in the market part of other centralized exchanges.
Top derivative exchanges by open interest. Source: Co ringecko
Hyperliquid is the 12th-largest derivatives exchange, with over $ 3 billion 24 hours open interest-even if it still runs at $ 19.5 billion by Binance by a wide margin, Co ringecko Data displays.
According to BitGet Research Analyst Ryan Lee, the incident could damage the user’s confidence in emerging decentralized platforms, especially if actions taken to the post-exploit appear to be extremely centralized.
“Hyperliquid’s intervention – criticized as centralized despite its decentralized ethos – can be careful for investors on similar platforms,” Lee said.
The whale exploits the logic of Hyperliquid trading
The unknown hyperliquid whale has managed to take advantage of hyperliquid extermination parameters by removing millions of dollars worth of trading positions.
The whale opened two long positions of $ 2.15 million and $ 1.9 million, and a $ 4.1 million short position effectively -offset the longs, according to a postmortem of blockchain analytics firm Arkham.
Hyperliquid exploitation, transactions. Source: Arkham
When the jelly price rose by 400%, the $ 4 million short position was not immediately liquid due to its size. Instead, it is absorbed into the hyperliquidity provider Vault (HLP), which is designed to liquid the large positions.
Related: Polymarket faces investigating over $ 7m Ukraine Mineral Deal Bet
On March 27, the unknown whale was still held by 10% of the total memecoin supply, which costs nearly $ 2 million, despite Hyperliquid freezing and removing MemecoinCites the “evidence of weak -suspected market activity” involving trading instruments.
Hyperliquid exploitation occurred two weeks after a balloon of Wall Street-inspired Memecoin-launched by Official Melania Meme (Melania) and Libra (Libra) token co-Create Hayden Davis-crashed more than 99% after launching with an 80% insider supply.
https://www.youtube.com/watch?v=ndv0rFehetq
Magazine: Memecoins are ded – but solana ‘100x better’ in spite of income plunge
