- Whale allegedly manipulated $JELLY price with sell-then-buy tactic
- HLP opened a $15.3M short as price fell
- Price surged 500%, causing $12.3M unrealized loss for HLP
In a stunning example of price manipulation, a wallet holding 126 million $JELLY tokens allegedly orchestrated a market move that caused a dramatic 500% price swing in just one hour. According to on-chain analyst @lookonchain, this event has left Hyperliquid’s HLP product with a staggering $12.3 million in unrealized losses.
The wallet in question began by offloading a substantial amount of $JELLY tokens, causing the token’s price to drop sharply. This dip created the perfect opportunity for HLP to open a significant short position — totaling 398 million $JELLY, equivalent to around $15.3 million in value.
Price Reversal Triggers Massive Losses
What followed next flipped the situation completely. The same wallet that had initiated the sell-off reversed its position and aggressively bought back $JELLY tokens. This sudden influx of buying pressure caused the token’s price to skyrocket by over 500% within just 60 minutes.
This unexpected price surge blindsided the HLP short position, which was now deeply underwater. With the price moving against the short, HLP’s position faced an unrealized loss of approximately $12.3 million — a sharp reversal from its initial expectations of profit.
Community Reacts to Alleged Manipulation
The crypto community is now buzzing with speculation about whether this was a coordinated market manipulation or just opportunistic trading. While on-chain data can provide evidence of activity, proving intent behind the trades remains complex.
Events like this highlight the risks in the world of decentralized finance , especially in low-liquidity markets where whales can have a disproportionate impact. Investors and protocols alike are reminded of the importance of risk management and transparency.
