A recent market manipulation incident involving HyperLiquid, a decentralized trading platform, has raised significant concerns regarding its security protocols and risk management strategies. This comes after a similar event that exposed the platform to substantial losses in early March, when a large trader triggered liquidation on Ethereum, costing Hyperliquid another $4 million. 0x95 opened a substantial short position of 430 million $JELLY tokens, leading to an unrealized loss of approximately $12 million for HyperLiquid’s treasury. The incident highlights the platform’s vulnerability to manipulation and raises questions about its ability to maintain true decentralization.