A crypto whale who allegedly manipulated the prize of the Jelly my Jelly (JELLY) memecoin on decentralized alternate Hyperliquid nonetheless holds almost $2 million value of the token, in keeping with blockchain analysts.
The unidentified whale made at the very least $6.26 million in revenue by exploiting the liquidation parameters on Hyperliquid.
In line with a postmortem report by blockchain intelligence agency Arkham, the whale opened three giant buying and selling positions inside 5 minutes: two lengthy positions value $2.15 million and $1.9 million, and a $4.1 million quick place that successfully offset the longs.
Supply: Arkham
When the value of JELLY rose by 400%, the $4 million quick place wasn’t instantly liquidated resulting from its dimension. As a substitute, it was absorbed into the Hyperliquidity Supplier Vault (HLP), which is designed to liquidate giant positions.
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In additional troubling revelations, the entity should be holding almost $2 million value of the token’s provide, in keeping with 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 most recent in a sequence 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,” in keeping with Alvin Kan, chief working officer at Bitget Pockets.
“In DeFi, momentum can drive short-term consideration, nevertheless it doesn’t construct sustainable platforms,” Kan instructed Cointelegraph, including:
“Initiatives 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 injury, it raises additional questions on decentralization, as related interventions “blur the road between decentralized ethos and centralized management.”
The Hyper Basis, Hyperliquid’s ecosystem nonprofit, will “routinely” reimburse most affected customers for losses associated to the incident, besides the addresses belonging to the exploiter.
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