HyperLiquid Market Manipulation Sparks Concerns About Security

HyperLiquid, a decentralized trading platform, has again faced a significant market manipulation incident that highlights vulnerabilities in its security protocols and risk management. This comes just weeks after a similar event resulted in substantial losses for users. 0xde95, an address identified by Arkham Intelligence, orchestrated this latest manipulation by opening a large short position on the platform’s $JELLY token. This action led to significant price fluctuations, ultimately triggering the loss of millions of dollars from HyperLiquid’s treasury.