The recent crypto market downturn has forced the DeFi community to confront a crucial topic that often gets overshadowed during bull runs: risk management. While this price correction may have surprised many, it provided an opportunity for increased awareness and focus on vital protocol safeguards. 2025 saw the incident at Hyperliquid, a prominent DeFi platform, serving as a powerful reminder of the risks involved in DeFi’s decentralized ecosystem. 2025 saw Hyperliquid experience two distinct market manipulation events: one involving aggressive ETH trading, followed by another focused on a small-cap memecoin called JELLY. These incidents served as stark alarms about the foundational weaknesses in DeFi’s risk infrastructure.