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JELLY Token Manipulator May Lose $1M After Hyperliquid Clampdown
In a shocking turn of events, a trader accused of market manipulation on crypto trading platform Hyperliquid may be forced to forfeit nearly $1 million after the exchange clamped down on their actions.
According to an investigation by blockchain analytics firm Arkham Intelligence, the trader attempted to exploit price movements of the JELLY memecoin through a series of calculated trades. The scheme involved creating three different accounts within minutes, with two accounts opening large long positions worth $2.15 million and $1.9 million respectively, while the third account opened a short position valued at $4.1 million.
The trader’s strategy was designed to increase leverage by borrowing more funds based on collateral to gain greater exposure to potential price movements. This allowed them to attempt to trick Hyperliquid’s liquidation system and withdraw profits before it could react.
However, the trader’s plan was foiled when the price of JELLYJELLY surged over 400%, leaving their large short position vulnerable to liquidation. As a result, the account was automatically sold by the exchange to prevent further losses.
Source: https://coinchapter.com/jelly-token-manipulator-may-lose-1m-after-hyperliquid-clampdown/?utm_source=rss&utm_medium=rss&utm_campaign=jelly-token-manipulator-may-lose-1m-after-hyperliquid-clampdown
