The Whyhyperliquidity Provider (HLP), a vault that a portion of the Derivatives Exchange Hyperliquid, faces a surprising loss after a businessman allegedly manipulated the price of the jelly token.
Hyperliquid’s native token (hype) fell 20% after the HLP PNL’s uncertain PNL stood for a negative $ 13.5 million.
According to LookonchainA businessman held $ 4.85 million of the jelly token combined a short Hyperliquid businessman with an on-chain spot purchased, it was liquid position in hyperliquid and essentially mean HLP inherited the short position.
HLP is an automatic bot market that is tied to engine exchange exchanges.
The entrepreneur then aggressively bought jelly in places, pushed the price and temporarily causing the uncertain HLP loss to stand by $ 13.5 million. Watering in decentralized exchange is minimal, so price transfer is relatively easy compared to hyperliquid.
Then, in an attempt to reduce the losses that hyperliquid appeared to force closely to the jelly market, regulating it at $ 0.0095 compared to $ 0.50 fed to oracles by decentralized exchanges.
“After evidence of weakening market activity, the Validator set gathered and voted on removal of jelly perps,” Hyperliquid wrote to X. “All users besides the flavored addresses will be made entirely from the Hyper Foundation. This will be done automatically in the coming days based on Onchain data.”
Newfound Research CEO Corey Hoffstein Question of legality of Hyperliquid’s actions as social media fall into anger. Businessman to manipulate the Jelly Market ended with a Small loss.
Hyperliquid delisting leads to another player entering the mix: Binance. The largest cryptocurrency exchange by trading volume saw an opportunity and announced that it lists futures tied to the jelly, causing spot prices on the skyrocket by 560%.
The case is getting similar to a Exploitation that took place in mango markets In 2022, where an entrepreneur called Avraham Eisenberg created a “highly benefit -useful trading approach” involved in manipulating Oracle prices to secure a benefit to derivative markets.
