Hyperliquid Delists JELLYJELLY After Market Manipulation

Hyperliquid, a decentralized exchange, delisted JELLYJELLY perpetual futures following a significant market manipulation incident that led to substantial financial losses. A trader shorted JELLYJELLY tokens and manipulated the price upwards, causing Hyperliquid's Hyperliquidity Provider (HLP) vault to absorb a $12 million unrealized loss, which later flipped to a $703,000 profit. The listing of the token on major exchanges like Binance and OKX increased its trading volume, complicating the situation for Hyperliquid. Critics have raised concerns about Hyperliquid's decentralization due to its ability to manually override prices and delist tokens. This incident follows a previous $4 million loss related to an ETH position, highlighting ongoing vulnerabilities within Hyperliquid's trading operations. The delisting has resulted in a sharp decline in JELLYJELLY's trading volume and liquidity across platforms.