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Hyperliquid ditches JELLYJELLY, profits $700K as whale’s gambit backfires
In a shocking turn of events, cryptocurrency exchange Hyperliquid has confirmed that it will be delisting the token JELLYJELLY (JELLY) after a mysterious trader allegedly manipulated the market, nearly sinking the exchange with a massive loss. However, in an unexpected twist, Hyperliquid has managed to profit from the ordeal by liquidating its own short position.
According to reports, a single trader opened an $8 million short position on JELLYJELLY, pumping the token’s price and forcing their own position into liquidation. The liquidator vault then absorbed the remaining short position, which was around $12 million unrealized loss as JELLYJELLY’s price continued to climb.
In a bold move, Hyperliquid took advantage of the manipulated short squeeze and forced liquidations by opening a long position on JELLYJELLY. As the token’s price skyrocketed, the exchange quickly pocketed over $703,000 in profits. The unexpected turn of events has left many in the cryptocurrency community stunned.
The situation unfolded as follows: a single trader allegedly manipulated the market by buying JELLY tokens, pumping its price and forcing their own short position into liquidation. This led to Hyperliquid’s liquidator vault absorbing the remaining short position, which was around $12 million unrealized loss.
In response, Hyperliquid took advantage of the situation by opening a long position on JELLYJELLY. As the token’s price continued to rise, the exchange liquidated its own short position, earning a profit of $703,000 without any losses, as reported by Lookonchain.
The incident highlights the potential risks and complexities of trading in cryptocurrency markets, where manipulation can have severe consequences for exchanges and traders alike. It also showcases Hyperliquid’s ability to adapt quickly to market conditions and capitalize on unexpected opportunities.
In conclusion, this shocking turn of events serves as a reminder that even in chaotic market conditions, quick thinking and effective risk management can lead to significant profits.
Source: https://cryptobriefing.com/hyperliquid-market-manipulation-jelly/
