The dealer behind the recent “suspicious market activities” about hyperliquid, which led to freezing and delist on the Jelly (jelly) memecoin, could have dropped from almost $ 1 million.
The blockchain evaluation company Arkham Intelligence said in a post -an March to X that the dealer tried to control the system in order that they profit from price movements and to withdraw the collateral before the hyperliquid liquidation system was in a position to catch up.
The dealer opened three accounts from one another inside five minutes, two with $ 2.15 million and $ 1.9 million, and the third a 4.1 million short film to cancel the long positions in a post-mortem report.
“This made it possible for him to accumulate leverage to release money from hyperliquid,” said Arkham.
Source: Arkham
When the worth for jelly was pumped by over 400%, the short position of $ 4 million entered the liquidation, however the open short circuit didn’t liquidate immediately since it was too big and as an alternative passed the hyperliquidity vault (HLP), which should liquidate the position.
At the identical time, the dealer withdrew the collateral from the opposite two accounts while he had a “7-digit positive PNL to retreat”, said Arkham.
However, the “Exploiter” quickly met a wall when the accounts that also had tens of millions in unrealized profit and loss were limited to reduced orders, which forced them to sell the tokens in the primary account available on the market with a view to regain among the funds.
Source: Arkham
Hyperliquid finally closed the Jelly token market at a price of 0.0095, the identical price because the short trade of the dealer, which was “included in the primary two explosions on all floating PNL”.
In total, the dealer in Arkham withdrew 6.26 million dollars, but a minimum of 1 million US dollars are still on the accounts.
“Assuming that he can withdraw this sooner or later in the longer term, his actions on Hyperliquid cost him a complete of 4,000 US dollars. If he will not be able, he has a loss of just about 1 million US dollars,” said the blockchain analytics company.
Hyperliquid has since rejected everlasting futures with the Jelly token, with evidence for suspicious market activities.
Other traders have used similar tactics
This will not be the primary time that hyperliquid had such problems. On March 14th, Hyperliquid increased the Margin requirements for dealers after his liquidity pool lost tens of millions of dollars during an enormous ether (Eth) liquidation.
On March 12, a whale dealer deliberately liquidated a $ 200 million of around 200 million US dollars, which led to HLP lost 4 million US dollars while relaxing the trade.
Dealers have also began to hunt whales on the platform and to deal with distinguished lever positions in a “democratized” try to liquidate them.
