The JELLY Crypto Manipulation: Concerns Over Binance's Role in Hyperliquid Sabotage
A coordinated effort by crypto whales, allegedly linked to Binance, raised concerns about market manipulation involving the JELLY token.
The JELLY Crypto Manipulation: Concerns Over Binance’s Role in Hyperliquid Sabotage
A coordinated group of whales, suspected to be associated with major cryptocurrency exchanges like Binance and OKX, manipulated the price of the JELLY token on the Hyperliquid DEX. Wallets tied to prominent centralized exchanges (CEX) opened significant short positions on JELLY, causing a substantial decline in the price of the HYPE token.
A massive whale with 124.6M $JELLY ($4.85M) is manipulating the price of $JELLY (jellyjelly) to make Hyperliquidity Provider (HLP) face a loss of $12M!
The leading wallet initially dumped JELLY, crashing its value and leaving HLP with substantial losses.
Analytics Platform Lookonchain Discovered the Market Manipulation of JELLY on Hyperliquid
Lookonchain observed that the first wallet opened a large short position on Hyperliquid while accumulating JELLY tokens from other sources. Remarkably, they retracted their margin, which resulted in HLP shouldering the loss of $4.5 million.
As a consequence, a separate wallet initiated a long order on JELLY, which peaked over $12 million in gains shortly afterward.
After evidence of suspicious market activity, the validator set convened and decided to delist JELLY’s perpetual contracts. All users, except flagged addresses, will be compensated from the Hyper Foundation, which will be executed in the upcoming days.
The series of actions led to JELLY’s market cap surging from $10 million to over $50 million before dropping to $25 million. Additionally, following the whale manipulation, the HYPE token also faced a drop, retreating from over $16 to under $13.
In the end, Hyperliquid took steps to delist JELLY, thereby averting significant losses, with HYPE now trading back at $14.84.
ZachXBT Uncovers Connections Between Major Exchanges and Hyperliquid Wallets
ZachXBT’s analysis revealed that the wallets involved in price manipulation had links to centralized exchanges, contributing to the suspicion of a coordinated effort to undermine Hyperliquid. During this turmoil, both OKX and Binance announced the introduction of perpetual pairs for the JELLY token, raising eyebrows about their motives.
Achieving a market cap of $150 million could have placed Hyperliquid in a vulnerable position of liquidation.
This incident sheds light on potential market manipulation within the cryptocurrency space and the implications it might pose for decentralized exchanges.
