{"id":19321,"date":"2025-03-27T09:32:08","date_gmt":"2025-03-27T09:32:08","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=19321"},"modified":"2025-03-27T09:32:08","modified_gmt":"2025-03-27T09:32:08","slug":"hyperliquid-whale-still-holds-10-of-jelly-memecoin-after-6-2m-exploit","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=19321","title":{"rendered":"Hyperliquid whale still holds 10% of JELLY memecoin after $6.2M exploit"},"content":{"rendered":"
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\"Hyperliquid<\/p>\n

A crypto whale who allegedly manipulated the prize of the Jelly my Jelly (JELLY) memecoin on decentralized exchange Hyperliquid still holds nearly $2 million worth of the token, according to blockchain analysts.<\/p>\n

The unidentified whale<\/a> made at least $6.26 million in profit by exploiting the liquidation parameters on Hyperliquid.<\/p>\n

According to a postmortem report by blockchain intelligence firm Arkham, the whale opened three large trading positions within five minutes: two long positions worth $2.15 million and $1.9 million, and a $4.1 million short position that effectively offset the longs<\/a>.<\/p>\n

\"Hyperliquid
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Source: <\/em>Arkham<\/em><\/a><\/p>\n<\/figcaption><\/figure>\n

When the price of JELLY rose by 400%, the $4 million short position wasn\u2019t immediately liquidated due to its size. Instead, it was absorbed into the Hyperliquidity Provider Vault (HLP), which is designed to liquidate large positions.<\/p>\n

Related: <\/strong><\/em>Polymarket faces scrutiny over $7M Ukraine mineral deal bet<\/strong><\/em><\/a><\/p>\n

In more troubling revelations, the entity may still be holding nearly $2 million worth of the token\u2019s supply, according to blockchain investigator ZachXBT.<\/p>\n

\u201cFive addresses linked to the entity who manipulated JELLY on Hyperliquid still hold ~10% of the JELLY supply on Solana ($1.9M+). All JELLY was purchased since March 22, 2025,\u201d he wrote in a March 26 Telegram post.<\/p>\n

The entity continues selling the tokens despite Hyperliquid freezing and delisting the memecoin<\/a>, citing \u201cevidence of suspicious market activity\u201d involving trading instruments.<\/p>\n

The JELLY token\u2019s collapse is the latest in a series of memecoin scandals and insider schemes looking to capitalize on investor hype.\u00a0<\/p>\n

\"Hyperliquid
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Source: <\/em>Bubblemaps<\/em><\/a><\/p>\n<\/figcaption><\/figure>\n

The exploit occurred only two weeks after a Wolf of Wall Street-inspired memecoin \u2014 launched by the Official Melania Meme (MELANIA)<\/a> and Libra (LIBRA) token co-creator Hayden Davis \u2014 crashed over 99% after launching with an 80% insider supply.<\/p>\n

\"Hyperliquid
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WOLF\/SOL, market cap, 1-hour chart. Source:\u00a0<\/em>Dexscreener<\/em><\/a><\/p>\n<\/figcaption><\/figure>\n

Related: <\/strong><\/em>Polymarket whale raises Trump odds, sparking manipulation concerns<\/strong><\/em><\/a><\/p>\n

Lessons from the JELLY memecoin meltdown: \u201chype without fundamentals\u201d<\/h2>\n

\u201cThe JELLY incident is a clear reminder that hype without fundamentals doesn\u2019t last,\u201d according to Alvin Kan, chief operating officer at Bitget Wallet.<\/p>\n

\u201cIn DeFi, momentum can drive short-term attention, but it doesn\u2019t build sustainable platforms,\u201d Kan told Cointelegraph, adding:<\/p>\n

\u201cProjects built on speculation, not utility, will continue to get exposed \u2014 especially in a market where capital moves quickly and unforgivingly.\u201d<\/p><\/blockquote>\n

While Hyperliquid\u2019s response cushioned short-term damage, it raises further questions about decentralization, as similar interventions \u201cblur the line between decentralized ethos and centralized control.\u201d<\/p>\n

The Hyper Foundation, Hyperliquid\u2019s ecosystem nonprofit, will \u201cautomatically\u201d reimburse most affected users for losses related to the incident, except the addresses belonging to the exploiter.<\/p>\n