The CEO of Bitget, Gracy Chen, wrote, “The way it handled the $JELLY incident was immature, unethical, and unprofessional, triggering user losses and casting serious doubts over its integrity.”She said that the exchange “may be on track to become FTX 2.0” and that the decision to close the Jelly market and settle positions at a favorable price “sets a dangerous precedent.” Alvin Kan, chief operating officer at Bitget Wallet, told Cointelegraph that the Jelly meltdown was just another example of how capricious hype-based price action can be. “The JELLY incident is a clear reminder that hype without fundamentals doesn’t last [...] In DeFi, momentum can drive short-term attention, but it doesn’t build sustainable platforms,” he said. The market will continue to expose projects that are built on speculation, not utility, he concluded. Arthur Hayes, the founder of BitMEX, seemed to imply that reactions to the Jelly incident were overblown, writing on X, “Let’s stop pretending hyperliquid is decentralised.
According to Arkham, the exchange closed the market with Jelly at $0.0095, the price at which the third account had entered its short trades. Hyperliquid announced on X that it would delist perpetual futures trading for the JELLY token, citing “evidence of suspicious market activity.”Related: Long and short positions in crypto, explainedThe exchange said, “All users apart from flagged addresses will be made whole from the Hyper Foundation.
And then stop pretending traders actually give a fuck.” Source: Arthur HayesThe exchange had already taken action regarding leveraged trading earlier in March, increasing margin requirements for traders after its HLP lost millions of dollars during a large Ether liquidation. Related: Hyperliquid ups margin requirements after $4 million liquidation lossStill, Hayes could be right — “degen” traders who are at peace with the risk of DeFi may just eat the losses and continue onward.
The story "Timeline: Jelly token goes sour after $6M exploit on Hyperliquid" has 752 words across 33 sentences, which will take approximately 4 - 7 minutes for the average person to read.
Which news outlet covered this story?
The story "Timeline: Jelly token goes sour after $6M exploit on Hyperliquid" was covered 3 days ago by Coin Telegraph, a news publisher based in United States.
How trustworthy is 'Coin Telegraph' news outlet?
Coin Telegraph is a fully independent (privately-owned) news outlet established in 2013 that covers mostly crypto news.
The outlet is headquartered in United States and publishes an average of 15 news stories per day.
It's most recent story was published 7 hours ago.
What do people currently think of this news story?
The sentiment for this story is currently Negative, indicating that people regard this as "bad news".
How do I report this news for inaccuracy?
You can report an inaccurate news publication to us via our contact page. Please also include the news #ID number and the URL to this story.
