{"id":19422,"date":"2025-03-27T16:04:27","date_gmt":"2025-03-27T16:04:27","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=19422"},"modified":"2025-03-27T16:04:27","modified_gmt":"2025-03-27T16:04:27","slug":"hyperliquid-vs-binance-and-okx-jelly-trading-rocks-hype-and-defi","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=19422","title":{"rendered":"Hyperliquid vs. Binance and OKX: JELLY Trading Rocks HYPE and DeFi"},"content":{"rendered":"
\n

Hyperliquid JELLY token saga with Binance, OKX listings shakes DeFi and crypto trading. HYPE drops 10%\u2014what\u2019s next?<\/em><\/p>\n

Clashes are nothing new in crypto, and yesterday, everyone was closely monitoring events pitting Hyperliquid, a popular decentralized futures exchange, against Binance and OKX\u2014two of the world\u2019s largest centralized exchanges that want to maintain their hegemony over crypto perpetual trading.<\/span><\/p>\n

JELLY Versus Hyperliquid: What\u2019s Going On?<\/span><\/h2>\n

At the heart of this saga was a low-market-cap Solana meme coin<\/a>, Jelly, which skyrocketed by over 300% within hours, nearly triggering a catastrophic $230 million liquidation for Hyperliquid. <\/span><\/p>\n

The two-day event, starting on March 25, exposed vulnerabilities in DeFi, specifically Hyperliquid\u2014which is not new to controversy<\/a>\u2014and raised more questions about whether decentralized protocols are as decentralized as they claim to be.<\/span><\/p>\n

Hyperliquid aims to change how crypto traders place positions away from centralized platforms. The platform has its layer-1 chain and is fast, processing tens of thousands of transactions every second. It is all in a low-fee environment with a smooth interface rivaling Binance, Coinbase, and Bybit.<\/span><\/p>\n

Over the months, Hyperliquid has processed over $1 trillion in trading volume, sometimes exceeding $2 billion in average daily volume. What sets it apart is that the platform is designed to ensure liquidity by taking passive positions while paying liquidity providers from revenue and liquidations.<\/span><\/p>\n

The Crisis Explained: Why Did Hyperliquid Crash?<\/span><\/h2>\n

This design became the lynchpin of this crisis, looking at what one nefarious trader chose to do on March 25. <\/span><\/p>\n

Targeting the JELLY vault on Hyperliquid, he dumped 124.6 million JELLY worth around $4.85 million, crashing prices and forcing the vault to automatically inherit a massive 398 million JELLY short position worth $15.3 million.<\/span><\/p>\n

\"Hyperliquid<\/p>\n

(Source)<\/a><\/strong><\/p>\n

While he shorted on JELLY on Hyperliquid, the trader simultaneously took a long position on Binance, pumping it from $0.0095 to $0.050, a 426% surge. The spike on Binance led to a short squeeze on Hyperliquid, meaning the vault and liquidity providers on the protocol held a $12 million unrealized loss.<\/span><\/p>\n

\"Hyperliquid<\/p>\n

(JELLYUSDT<\/a>)<\/strong><\/p>\n

If JELLY prices continued rising, pumping to a market cap of over $150 million, then the JELLY vault on Hyperliquid could have been liquidated, causing massive losses. <\/span><\/p>\n

Did Binance and OKX Want To Bury Hyperliquid?<\/span><\/h2>\n

Binance and OKX wanted this because as Hyperliquid tried to manage this clear price manipulation, they listed JELLY on their perpetual futures platform, aiming to cause more distress to liquidity providers on Hyperliquid. <\/span><\/p>\n

By listing, JELLY prices rose, with market cap peaking at $50 million before retracing to around $25 million.<\/span><\/p>\n

However, Hyperliquid became decisive in managing this crisis. <\/span><\/p>\n

Not only did its validators vote to delist JELLY perpetual, but i<\/span>t <\/span>also closed all positions at $0.0095\u2014the price point at which the short trader had initiated its huge short. By doing this, they automatically converted a $12 million unrealized loss into a $700,000 profit.<\/span><\/p>\n

\"Hyperliquid<\/p>\n

(Source<\/a>)<\/strong><\/p>\n

Hyperliquid also said it would reimburse liquidity providers except for price manipulators. While this was welcomed, HYPE prices fell sharply, sliding 10% in the last 24 hours, per Coingecko<\/a>.<\/span><\/p>\n

\"\"<\/p>\n

(HYPEUSDT<\/a>)<\/strong><\/p>\n

HYPE Falls As More Questions Raised<\/span><\/h2>\n

The sell-off was due to the fierce backlash from the community. <\/span><\/p>\n

Arthur Hayes, the co-founder of BitMEX, said Hyperliquid was centralized. In his view, HYPE prices would fall, underperforming some of the best Solana meme coins to buy in 2025<\/a>.<\/span><\/p>\n

\n

$HYPE<\/a> can\u2019t handle the $JELLY<\/a><\/p>\n

Let\u2019s stop pretending hyperliquid is decentralised <\/p>\n

And then stop pretending traders actually give a fuck <\/p>\n

Bet you $HYPE<\/a> is back where is started in short order cause degens gonna degen<\/p>\n

\u2014 Arthur Hayes (@CryptoHayes) March 26, 2025<\/a><\/p>\n<\/blockquote>\n