Revolutionize Your Portfolio with Unpredictable Markets: Jelly Crypto’s Uncertain Fate?
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Hyperliquid Delists JELLY Crypto After Price Spike, $12M Vault Loss Narrowly Averted!
Transaction counts and volume soared. That kind of market activity doesn’t happen by chance — Especially not within a single day. Needless to say, Hyperliquid’s response raised new questions.
Critics call out centralized behavior
Gracy Chen, CEO of cryptocurrency exchange Bitget, publicly denounced Hyperliquid’s decision-making process. “Despite presenting itself as an innovative decentralized exchange with a bold vision, Hyperliquid operates more like an offshore [centralized exchange].”
Drawing comparisons to past collapses, Chen warned, “Hyperliquid may be on track to become FTX 2.0.”
Chen further criticized the force-settlement decision as “immature, unethical, and unprofessional,” emphasizing the long-term consequences of undermining market trust.
“The decision to close the $JELLY market and force settlement of positions at a favorable price sets a dangerous precedent. Trust—not capital—is the foundation of any exchange [and] once lost, it’s almost impossible to recover.”
Clearly, the validator vote mirrored actions taken by centralized exchanges under pressure. Arthur Hayes commented on the contradiction, noting that the protocol’s branding didn’t match its behavior.
Red flags galore
Exchange links raise more red flags
ZachXBT connected attacker wallets to exchanges like OKX, Binance, and MEXC — All of which listed JELLY shortly after the delisting. As validators voted, the HYPE governance token dropped by 22%, hinting at shaken user trust.
Wallet 0xde95 withdrew $6.26 million before account freezes. Just $900,000 remained locked. The vault’s 4.8x leverage exposure turned a $6 million short into a $12 million liability.
Until low-cap leverage is reeled in, more JELLY-style plays may follow.
For now, Hyperliquid has avoided collapse. Even so, this episode did expose its governance.
Source: https://ambcrypto.com/hyperliquid-delists-jelly-jelly-crypto-after-price-spike-12m-vault-loss-narrowly-averted
