According to blockchain analysts, the crypto whale, whose distributed exchange of jelly jelly (jelly) is said to still hold tokens worth around $2 million.
The unidentified whales made profits of at least $6.26 million by utilizing high lipid liquidation parameters.
According to a posthumous report by blockchain intelligence company Arkham, the whale opened three large trading positions within five minutes. The two long positions are two long positions worth $2.15 million and $1.9 million, and a short position of $4.1 million that effectively offsets the long position.
sauce: Arkham
When the price of the jelly rose 400%, the $4 million short position was not immediately liquidated due to its size. Instead, it was absorbed into a high degree of freedom provider Vault (HLP), designed to settle large locations.
Related: Polymarket faces scrutiny beyond its $7 million Ukrainian mineral trade bet
In a more troubling revelation, the entity could still hold a supply of nearly $2 million in tokens, according to blockchain investigator ZachxBT.
“Five addresses linked to the entities that manipulated the jelly hold ~10% of the jelly supply in Solana (over $1.9 million). All jelly was purchased after March 22, 2025,” he wrote in a telegram post on March 26th.
The entity continues to sell tokens despite lipid-freezing and the abolition of Memocoin.
The Jelly Token collapse is the latest in a series of memocoin scandals and insider schemes that are trying to capitalize on investor hype.
sauce: Bubble map
Exploit crashed more than 99% with an 80% insider supply two weeks after it was launched by the official Melania Meme (Melania) and Libra token co-creator Hayden Davis.
Wolf/Sol, market capitalization, 1 hour chart. sauce: Dex Screener
Related: Polymake whales cause odds of playing cards and cause operational concerns
Lessons from Jelly Memecoin Meltdown: “High Ads with No Fundamentals”
“The Jelly incident is a clear memory of the lack of fundamental hype not continuing,” according to Alvin Kan, Chief Operating Officer of Bitget Wallet.
“With defi, momentum can attract short-term attention, but you can’t build a sustainable platform,” Kang told Cointelegraph, adding:
“Projects built on speculation rather than utilities will continue to be exposed, especially in markets where capital is moving quickly and relentlessly.”
Hyperliquid’s response eased short-term damage, but raises further questions about decentralization, as similar interventions “blemish the line between distributed minds and centralized control.”
Hyper Foundation, Hyperliquid’s ecosystem nonprofit, will “automatically” refund most affected users for incident-related losses, except for addresses belonging to the exploit.
https://www.youtube.com/watch?v=3dyench-2is
magazine: Memokine is ded, but despite the sharp decline in revenue, the solana ‘100x is good.”
