Recently, Hyperliquid has faced significant challenges, including security issues and systemic flaws, putting investor confidence at risk.
Security Vulnerabilities and Transaction Scandals
The primary reason for the platform's crisis has been security vulnerabilities. Losses amounting to approximately $4 million, involving large Bitcoin transactions, highlighted these issues. The situation with JELLY token transactions also raised market manipulation suspicions.
Urgent Revisions in Risk Management
In response to challenges, Hyperliquid quickly introduced major changes to its risk management policies, including limits on the liquidator pool and reduced rebalancing frequency. The implementation of on-chain voting and automatic reduction processes aim to enhance system transparency.
Market Response and Community Critiques
The platform experienced a sharp decline in market value, losing 20% over the past week and 8% in the last 24 hours. Discussions about its future are intense within the community. Some investors find Hyperliquid's measures insufficient, pointing to the need for structural changes to restore trust.
The security issues and crisis management at Hyperliquid pose significant challenges. Despite the steps taken, uncertainty among investors persists.
