A crypto whale who allegedly manipulated the prices of Jelly my Jelly (JELLY) memecoin on decentralized exchange Hyperliquid still holds nearly $2 million worth of the token, according to blockchain analysts.
Price Manipulation of JELLY
The unidentified whale made at least $6.26 million in profit by exploiting the liquidation parameters on Hyperliquid. According to blockchain intelligence firm Arkham, the whale opened three large trading positions within five minutes: two long positions worth $2.15 million and $1.9 million, and a $4.1 million short position that effectively offset the longs. When the price of JELLY rose by 400%, the $4 million short position wasn’t immediately liquidated due to its size and was absorbed into the Hyperliquid Provider Vault (HLP).
Hyperliquid's Response and Implications
According to blockchain investigator ZachXBT, the entity may still be holding nearly $2 million worth of the token’s supply. Five addresses linked to the entity who manipulated JELLY on Hyperliquid still hold ~10% of the JELLY supply on Solana ($1.9M+). Despite Hyperliquid freezing and delisting the memecoin, the entity continues selling the tokens. The JELLY token’s collapse is the latest in a series of memecoin scandals.
Lessons from the JELLY Meltdown
The JELLY incident is a reminder that hype without fundamentals doesn’t last, according to Alvin Kan, COO at Bitget Wallet. He noted that projects built on speculation, not utility, will continue to get exposed, especially in a market where capital moves quickly and unforgivingly. While Hyperliquid’s response cushioned short-term damage, it raises questions about decentralization. The Hyper Foundation will automatically reimburse most affected users.
The JELLY token case highlights the need for caution in investing and thorough examination of a project's fundamentals. In DeFi, it is crucial not to succumb to numerical hype but always consider projects through the lens of their long-term potential and sustainability.
