PANews reported on March 28 that according to Hyperliquid's announcement, due to an abnormal trading event in the JELLY market, users holding long JELLY positions will be compensated at a price of 0.037555 during settlement, which is beneficial to all JELLY traders except for marked addresses. Event review:

• A trader self-traded a JELLY position worth 4 million USDC at a price of 0.0095.

• Subsequently, the JELLY price rose by over 4 times, and HLP triggered a buyback and liquidated the position, causing damage to the HLP account value.

• Although the 4 million USDC position did not exceed the dynamic open interest (OI) limit, it triggered the automatic limit but failed to prevent further opening.

• The key issue was that after HLP took over the position, it shared collateral with other strategy components without triggering automatic deleveraging (ADL).

Hyperliquid has strengthened risk management, including:

• HLP Liquidator Management: Setting stricter account value limits, reducing rebalancing frequency, and introducing more complex buyback liquidation logic. If a Liquidator's loss exceeds the threshold, ADL will be triggered instead of automatically using other component collateral.

• Dynamic OI Limit Adjustment: Open interest limits will be dynamically adjusted based on market value.

• Asset Delisting Mechanism: Validators will delist assets below the threshold through on-chain voting.

Hyperliquid promises to continue optimizing the system and enhancing risk prevention capabilities.