- The Hyperliquid vault faced a $20M loss via Jellyjelly token manipulation.
- Jellyjelly target chosen due to easy price manipulation.
- Market reactions underscore the need for better security measures.
Hyperliquid experienced another significant attack on its vault, occurring on March 26, where the memecoin Jellyjelly was targeted for manipulation, resulting in a $20 million impact on total value locked (TVL).
The event underscores vulnerabilities within DeFi platforms, as market players manipulated Jellyjelly prices, highlighting risks with high-leverage products. Tobias Reisner has discussed various insights on this issue.
$20 Million Loss from Jellyjelly Manipulation Analyzed
Hyperliquid’s vault was targeted again, with a new focus on manipulating Jellyjelly. Two addresses played key roles, with Address 0xde9…f5c91 opening a significant short position. “Opening a $4.08 million short order on Hyperliquid was a calculated move to capitalize on the vault’s vulnerabilities,” a source confirmed. The pair orchestrated price declines to exploit the platform’s mechanisms. Price manipulation on the memecoin saw the use of 50x leverage, previously successful on Ethereum (ETH), now repeated on Jellyjelly to exploit its depth gaps. Immediate implications include a significant drop in Hyperliquid’s TVL as market confidence wavers, and investors swiftly withdraw funds. Notable fluctuations in Jellyjelly’s price were observed, driven by the attack. No official statements from Hyperliquid leadership are currently available. The liquidity drain and leverage usage prompted discussions on security, with retail investors watching closely for further updates.
Ethereum’s current market snapshot, according to CoinMarketCap, reveals a price of $2,013.83 with a market cap at $242.96 billion. The token prices witnessed significant changes, with a 24-hour decrease of 2.58% and a 30-day drop of 24.06%, indicating volatile market conditions.
DeFi Security Under Scrutiny as Hyperliquid Reels
Did you know? Attacks on liquidity pools are not new in DeFi. In previous cases, strong leverage positions like those targeted in this incident have led to massive fluctuations in token prices.
Coincu’s research anticipates further regulatory scrutiny on DeFi mechanisms. Historical trends show increasing pressure on platforms to adopt robust risk management protocols amid complex financial products.
Market reactions underscore the need for better security measures as the DeFi landscape evolves.
No tags available.
Other Posts
Latest
Hedge Funds Execute Major Tech Stock Sell-Off Amid Market Strains
Press Release
Coincall Debuts On Top 5 Crypto Options Exchanges by Volume, Announces ‘Earn While You Trade’ Feature
The Nation Token ($NATO) Officially Launches Following Historic Airdrop to 1 Million Users on Base
