Previously, the "Hyperliquid 50x Leverage Whale" who made huge profits through high-leverage operations on the decentralized exchange Hyperliquid, had performed a "voluntary liquidation" drama, earning nearly $2 million in profits and leaving a pile of bad debts for the Hyperliquid Treasury (HLP).

Just yesterday (26th), perhaps seeing the profitable strategy of the "Hyperliquid 50x Leverage Whale" in exploiting the Hyperliquid Treasury, a wallet address 0xde9…c91 trader once again staged a voluntary liquidation drama using the meme coin $JELLYJELLY, temporarily causing Hyperliquid to suffer floating losses of over $10 million.

Event Chronology

According to on-chain data analyst Ai Aunt's recap last night:

• $JELLYJELLY has weaker liquidity compared to ETH previously chosen by the "Hyperliquid 50x Leverage Whale", making its price easier to manipulate;
• Opened a $JELLYJELLY short position worth $4.08 million on Hyperliquid, with an average price of $0.0095, with a margin of $3.5 million;
• Performed voluntary liquidation: Another address Hc8gN…WRcwq collaborated by dumping spot to suppress coin price, creating floating profit space for the short position, while the short position address withdrew $2.76 million in margin, allowing the position to be taken over by Hyperliquid Treasury;
• Then began intensively buying $JELLYJELLY, raising the coin price, causing Hyperliquid Treasury to continuously bear floating losses, which momentarily exceeded $10 million.

Ai Aunt pointed out that the consequence is that as long as $JELLYJELLY doesn't drop, retail investors in Hyperliquid Treasury will withdraw funds, and the more withdrawals, the lower the liquidation price, potentially leading to a bank run and ultimately forced liquidation due to insufficient margin.

Binance and OKX Successively List $JELLYJELLY Contract

The worst-case scenario was if $JELLYJELLY's price continued to be raised to around $0.17, Hyperliquid Treasury would face potential losses of up to $240 million.

More dramatically, when community members joked that if positive news about $JELLYJELLY were released, the coin price would surge, potentially completely liquidating Hyperliquid Treasury - at that moment, exchanges Binance and OKX quickly listed $JELLYJELLY contract trading, rapidly stimulating price increase, seemingly intent on surrounding Hyperliquid.

Hyperliquid Delists $JELLYJELLY

Under widespread attention, Hyperliquid chose to delist $JELLYJELLY trading pair and settle positions at $0.0095, avoiding any losses.

Although Hyperliquid's final operation promptly prevented retail investor fund outflow risks, it also drew community criticism for forcibly intervening, setting a settlement price, and directly delisting the token - effectively turning a decentralized exchange into a centralized one.

Community member @_FORAB summarized this event as everyone's "hunting" of Hyperliquid:

Simply explaining what happened on Hype:

. Two accounts, one shorting and one longing

. Continuously manipulating spot to liquidate short positions

. Large short positions taken over by Hype

. All long positions became Hype's counterparty

. Continuously raising prices to make long positions profitable, causing Hype massive losses

. Finally closing long positions for profit, then selling spot

Can be understood as everyone collectively hunting the casino, wanting to make Hype disappear

The core of this turbulence, $JELLYJELLY, significantly dropped after being settled and delisted on Hyperliquid.