Hyperliquid, a decentralized perpetual exchange, was again hit by an attack. The event involved targeting vaults using the memecoin $Jellyjelly, revealing significant system vulnerabilities.
New Attack on Hyperliquid
This week, Hyperliquid was subjected to another assault using the memecoin $Jellyjelly, which had a substantial impact on its financial stability. The memecoin's price surged by nearly 500%, causing market turbulence.
Implications for Hyperliquid
Blockchain analysts identified a coordinated attack involving airdrop baits and strategic short positions on $Jellyjelly. The attack cut the total value locked by $20 million. Hyperliquid announced measures to enhance security and compensate affected users.
Increasing Regulatory Scrutiny
$Jellyjelly marks the second major challenge for Hyperliquid's vaults in March 2025. Coincu's research team notes increased regulatory scrutiny on platforms like Hyperliquid and emphasizes the need for stronger protective measures.
The attack on Hyperliquid highlighted the need for enhanced security measures and oversight in the decentralized finance sector, potentially leading to significant industry regulatory changes.
