Hyperliquid "sniping" incident tracking
On the evening of March 26, 2025, due to the price fluctuations of the JELLY token, the Hyperliquid counterpart vault was on the verge of liquidation, and the entire protocol treasury faced the risk of going to zero. How will the situation develop?
10:00 Hyperliquid Event PR Review: After Technical Hemostasis, How Should Brand Trust Be Repaired?
"Not making mistakes" is a wish, but "how to respond after making mistakes" is the core capability for a project to survive in the long term.
08:29 Hyperliquid optimizes risk management mechanisms and compensates JELLY long users
ChainCatcher message, according to Hyperliquid's announcement, due to the abnormal trading event in the JELLY market, users holding long positions in JELLY will be compensated at a price of 0.037555 upon settlement. This compensation benefits all JELLY traders except for the marked addresses. Event review:A trader self-executed a JELLY position worth 4 million USDC at a price of 0.0095.Subsequently, the JELLY price rose more than 4 times, triggering HLP to buy back and liquidate the position, resulting in a loss of value for the HLP account.Although the 4 million USDC position did not exceed the dynamic open interest (OI) limit, it failed to prevent further opening of positions after triggering the automatic limit.The key issue was that after HLP took over the position, it shared collateral with other strategy components, which did not trigger automatic deleveraging (ADL).Hyperliquid has strengthened risk management, including:HLP Liquidator Management: Setting stricter account value limits, reducing rebalancing frequency, and introducing more complex buyback liquidation logic. If the Liquidator's losses exceed the threshold, it will trigger ADL instead of automatically using collateral from other components.Dynamic Adjustment of OI Limits: The open interest limit will be dynamically adjusted based on market capitalization.Asset Delisting Mechanism: Validators will vote on-chain to delist assets that fall below the threshold.Hyperliquid is committed to continuously optimizing the system and enhancing risk prevention capabilities.
10:01 Data: Hyperliquid had a net capital outflow of 184 million USD yesterday
ChainCatcher news, according to DefiLlama data, possibly influenced by the JELLY event, Hyperliquid experienced a net outflow of $184 million yesterday. The current protocol TVL is reported at $2.026 billion.
08:28 Bitget CEO questions Hyperliquid's risk control mechanism, warning it could become the next FTX
ChainCatcher news, Bitget CEO Gracy Chen publicly criticized Hyperliquid's handling of the JELLY incident, pointing out that the platform: the forced liquidation operation is suspected of price manipulation; the mixed fund pool design has systemic risks; the failure to implement KYC/AML raises concerns about money laundering.Chen warned that if the platform does not address product design flaws and the trust crisis, it could become the "next FTX." This controversy stems from Hyperliquid's previous closure of the JELLY trading pair and the forced liquidation at a specific price.
01:59 Once again at the center of controversy, will "on-chain Binance" HyperLiquid collapse?
Are holders getting anxious? Can the reputation of "on-chain Binance" still be maintained?
00:28 ZachXBT: Hyperliquid officials remain indifferent to North Korean hackers using stolen funds while manipulating market prices
ChainCatcher message, on-chain detective ZachXBT criticized Hyperliquid on platform X, stating: "It is outrageous that Hyperliquid officials can manipulate prices at will, but when North Korean hackers use Radiant to steal funds and hold a significant short position on it, they remain indifferent."
00:21 Lookonchain: The funds used to attack Hyperliquid come from Binance and OKX
According to ChainCatcher's message, monitored by Lookonchain, the funds used to attack Hyperliquid and open positions were withdrawn from the exchanges Binance and OKX.
00:18 Zhao Changpeng reiterated in a post that "DEX is not as good as CEX."
ChainCatcher news, Zhao Changpeng posted on social media stating, "I know I'm not that smart. When I don't understand something, I will admit it, and I often feel that those impressive people must have some tricks that I don't know to achieve what I can't. But occasionally, I find that the most basic rules still apply."It is worth noting that Zhao Changpeng's tweet referenced a previous tweet stating "DEX is not as good as CEX." In this regard, Zhao Changpeng specifically explained that to avoid confusion, this tweet is unrelated to the HL incident. It was about his previous experience trying out AstherusHub on the BSC chain, which is a project in the Labs portfolio. They do not display liquidation prices and use an automatic deleveraging mechanism (ADL), so issues similar to today's will not occur.
00:16 Data: HLP TVL on Hyperliquid plummets to $197 million
ChainCatcher news, according to information from the Hyperliquid official website, HLP TVL has temporarily dropped to $197 million.It is reported that HLP TVL was previously as high as $240 million.
00:01 Data: Hyperliquid clearing JELLY short position instead made a profit of $703,000
According to ChainCatcher news and monitored by Lookonchain, Hyperliquid liquidated 392 million JELLY (approximately 3.72 million USD) at a price of 0.0095 USD before delisting JELLY, with no losses, instead making a profit of 703,000 USD.
