TechFlow reports on March 26 that according to on-chain analyst Ai Aunt (@ai_9684xtpa), the Hyperliquid vault has incurred a floating loss of $10.63 million on a $5 million short position in jellyjelly received from an auto-liquidated trader. If the counterparty pushes the token price up to around $0.17, the vault will face liquidation and lose its current holdings of $240 million. It appears that funds are already deliberately inflating the jellyjelly price, which has surged 230% in the past hour. Worse still, the capital in the Hyperliquid Vault seems to be dwindling, further squeezing the liquidation price.
In addition, as disclosed by X platform user @DamianProsa, this move appears to be a scheme by the jellyjelly token market maker, who sent 12.6% of the token supply to address Hc8gNS-MaQi-ahiRiGjUf-TaW8AX-u-dR-JHe-GoeG-pAn8WRGwg, selling tokens worth $500 every few seconds. This address holds 65% of the entire liquidity pool; if all tokens are dumped, the jellyjelly token price would plummet sharply, potentially driving the project's valuation back down to $5 million.
Previous report: Hyperliquid Vault received a $5 million jellyjelly short position due to automatic liquidation of a trader.
