The traders behind the recent “suspecting market activity” regarding high lipids that led to the freezing and abolishing of jelly, it is possible that my jelly (jelly) memokine has dropped almost $1 million from their actions.
Blockchain analytics firm Arkham Intelligence said in a post on March 26 that traders tried to operate the system to profit from price movements.
Traders opened three accounts within five minutes, two short positions of $2.5 million and one-third of $4.1 million to cancel long positions.
“This allowed him to build leverage in an attempt to drain funds from high lipids,” Arkham said.
sauce: Arkham
When the price of the jelly exceeded 400%, a $4 million short position was settled, but the open short was too big and not immediately cleared as it was handed over to a high degree of freedom provider Vault (HLP), which was to settle the position instead.
At the same time, traders will withdraw collateral from two other accounts and “withdraw from the seven-figure positive PNL,” Arkham said.
However, “exploits” quickly hit the wall when accounts with millions of unrealized profits and losses still remained limited to orders for reductions only, forced to sell tokens on the first accounts of the market to collect some of the funds.
sauce: Arkham
Ultimately, the high-quality compounds closed the jelly token market at a price of 0.0095. This is the same price as the trader’s short trading, “zero all floating PNLs in the first two exploit accounts.”
In total, Arkham says that traders have withdrawn $6.26 million, but at least $1 million is still in their accounts.
“If we assume that we can withdraw this at some point in the future, his actions on high lipids cost him a total of $4,000.
Since then, Hyperliquid has listed a lasting future tied to jelly tokens, citing evidence of suspicious market activity.
Other traders use similar tactics
This is not the first time this has had such a problem. On March 14, high lipids increased trader margin requirements after liquidity pools lost millions of dollars during large ether (ETH) liquidation settlements.
Related: Bitget CEO slumps handling Hyperliquid for “suspecting” incidents, including jelly tokens
The whale trader intentionally settled an ether long position of around $200 million on March 12, with HLP losing $4 million while unlocking the trade.
Traders are also targeting prominent leveraged positions in “democratized” attempts to launch whale hunting on the platform and liquidate them.
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