A recent market manipulation incident on HyperLiquid, a decentralized trading platform, has raised concerns about the platform’s security protocols and risk management. This follows a similar event earlier this month involving a massive liquidation that exposed vulnerabilities in the platform’s systems. 0xde95 exploited the platform’s system by opening a substantial short position of $JELLY tokens, leading to an unrealized loss of approximately $12 million for HyperLiquid. This price surge was then amplified through further trades exploiting the platform’s vulnerabilities, causing a significant loss that could have reached $240 million if not for a sudden reversal of the market.