Hyperliquid Delists Contract Amid Price Manipulation Concerns

Hyperliquid has removed perpetual futures for the JELLYJELLY token following a decision by validators due to “suspicious market activity.”

After evidence of suspicious market activity, the validator set convened and voted to delist JELLY perps.

All users apart from flagged addresses will be made whole from the Hyper Foundation. This will be done automatically in the coming days based on onchain data. There is no…

— Hyperliquid (@HyperliquidX) March 26, 2025

An attacker crashed the price with a $6 million short, then deliberately triggered the liquidation of their position. According to the system’s mechanism, the order was automatically transferred to the Hyperliquidity Provider (HLP) treasury, after which the trader began pumping the price.

The unrealized loss on the position reached $11.7 million with a total TVL of $240 million. The Hyperliquid team clarified that the net profit over 24 hours was 700,000 USDC.

The JELLYJELLY price movement range reached approximately 500%. Following the news, the platform’s HYPE token fell by 20%.

Users affected by the attacker’s actions will be compensated for their losses from the Hyper Foundation treasury.

The attack and the platform developers’ response sparked a debate about the decentralization of Hyperliquid.

$HYPE can’t handle the $JELLY

Let’s stop pretending hyperliquid is decentralised

And then stop pretending traders actually give a fuck

Bet you $HYPE is back where is started in short order cause degens gonna degen

— Arthur Hayes (@CryptoHayes) March 26, 2025

“HYPE can’t handle JELLY. Let’s stop pretending Hyperliquid is decentralised. And then stop pretending traders actually care. Bet you HYPE is back where it started in short order because degens gonna degen,” commented former BitMEX CEO Arthur Hayes on the incident.

Earlier, experts from 10x Research noted that Hyperliquid’s transparency enabled a “people’s hunt” on leveraged whales to liquidate their positions.