A crypto whale who allegedly manipulated the prize of the Jelly my Jelly (JELLY) memecoin on decentralized alternate Hyperliquid nonetheless holds practically $2 million price of the token, based on blockchain analysts.
The unidentified whale made no less than $6.26 million in revenue by exploiting the liquidation parameters on Hyperliquid.
Based on a postmortem report by blockchain intelligence agency Arkham, the whale opened three massive buying and selling positions inside 5 minutes: two lengthy positions price $2.15 million and $1.9 million, and a $4.1 million quick place that effectively offset the longs.
Supply: Arkham
When the worth of JELLY rose by 400%, the $4 million quick place wasn’t instantly liquidated on account of its measurement. As a substitute, it was absorbed into the Hyperliquidity Supplier Vault (HLP), which is designed to liquidate massive positions.
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In additional troubling revelations, the entity should still be holding practically $2 million price of the token’s provide, based on blockchain investigator ZachXBT.
“5 addresses linked to the entity who manipulated JELLY on Hyperliquid nonetheless maintain ~10% of the JELLY provide on Solana ($1.9M+). All JELLY was bought since March 22, 2025,” he wrote in a March 26 Telegram submit.
The entity continues promoting the tokens regardless of Hyperliquid freezing and delisting the memecoin, citing “proof of suspicious market exercise” involving buying and selling devices.
The JELLY token’s collapse is the newest in a collection of memecoin scandals and insider schemes seeking to capitalize on investor hype.
Supply: Bubblemaps
The exploit occurred solely two weeks after a Wolf of Wall Road-inspired memecoin — launched by the Official Melania Meme (MELANIA) and Libra (LIBRA) token co-creator Hayden Davis — crashed over 99% after launching with an 80% insider provide.
WOLF/SOL, market cap, 1-hour chart. Supply: Dexscreener
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Classes from the JELLY memecoin meltdown: “hype with out fundamentals”
“The JELLY incident is a transparent reminder that hype with out fundamentals doesn’t final,” based on Alvin Kan, chief working officer at Bitget Pockets.
“In DeFi, momentum can drive short-term consideration, however it doesn’t construct sustainable platforms,” Kan instructed Cointelegraph, including:
“Tasks constructed on hypothesis, not utility, will proceed to get uncovered — particularly in a market the place capital strikes rapidly and unforgivingly.”
Whereas Hyperliquid’s response cushioned short-term harm, it raises additional questions on decentralization, as comparable interventions “blur the road between decentralized ethos and centralized management.”
The Hyper Basis, Hyperliquid’s ecosystem nonprofit, will “robotically” reimburse most affected customers for losses associated to the incident, besides the addresses belonging to the exploiter.
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