A recent statement by Bitget CEO Gracy Chen regarding the Hyperliquid platform has sparked discussions. The platform's vulnerability has cast doubts on its transparency and management.
Recent $JELLY Incident
Arkham Intelligence reported that the issue arose from a trader's market manipulation attempt using the JELLYJELLY token by speculating with substantial deposits. Although aiming for profit, the trader ultimately faced losses that could worsen unless Hyperliquid allowed fund withdrawal.
Risk Management Issues
Gracy Chen emphasized Hyperliquid's lack of essential KYC and AML measures, rendering it vulnerable to illicit activities. She also pointed to structural flaws like the mixed vault system, posing systemic risks.
Discussion with Other Experts
Bybit CEO Ben Zhou also commented on the risks of high leverage on decentralized and centralized platforms due to major Ethereum liquidations on Hyperliquid. He stressed the importance of managing volatility and market manipulations.
Hyperliquid's issues have highlighted crucial aspects of risk management in decentralized platforms. Experts emphasize the need for structural and operational improvements to prevent future crises.
