TechFlow News, March 27 — Bitget CEO Gracy Chen has raised concerns over Hyperliquid's handling of the $JELLY incident, pointing out the platform's lack of a proper forced liquidation mechanism, inadequate fund pool management, and absence of KYC/AML compliance, which could trigger significant market risks.
Gracy emphasized that trust is the cornerstone of any exchange, whether centralized (CEX) or decentralized (DEX), and once lost, it is extremely difficult to regain. Hyperliquid’s decision to delist the $JELLY trading pair and forcibly liquidate positions at a specific price has sparked market concerns about the fairness of its trading mechanisms. If the platform fails to address its product design flaws and the resulting crisis of confidence, it may become the "next FTX." The controversy stems from Hyperliquid’s prior move to shut down the JELLY trading pair and conduct forced liquidations at a set price.
