Binance and OKX list JELLY futures amid Hyperliquid’s delisting and market manipulation fallout

Following 400% + price pump of the jelly caused by a market handling incident on hyperliquidal, binance and OKX capitalized on volatility by listing the contracts on the transfer side, while the hyperliquid has radiated the MEPs of the token, confronted with reactions on centralization concerns.

After the recent market manipulation incident on hyperliquid (THRESHING) involving the jelly jelly token (jelly), the exchange of derivatives decided To delimit the jelly and reimburse affected users. Shortly after, Binance listed Future jelly, followed by Okx.

It was probably a decision to seize the opportunity created by the extreme swing of the token, which made it very attractive for speculative trade. On March 26, the price of jelly increased from around $ 0.0095, where the operator opened its uncovered position, at a summit of $ 0.0,050, marking an increase of approximately 426%. Since high volatility stimulates the volume of negotiation, the two exchanges considerably benefit from negotiation costs on jelly perps.

However, some believe that Binance and Okx’s Move are not only potential benefits of costs, but also wiping the competitor. Even user called It is a “pure decision to try to bury a competitor”, comparing it to the alleged role of Binance in the collapse of FTX, adding it “rewrite the history of what happened to FTX”.

Interestingly, the engineer of the Zachxbt blockchain noted that the two accounts linked to the 0x20e8 and 0x67F manipulation were financed by Binance.

Meanwhile, the price of jelly ended up at $ 0.020, according to Co Ringecko.

The manipulation incident

According to Arkham IntelligenceThe merchant in question opened three accounts: two long position positions worth 2.15 million dollars and $ 1.9 million, and a third with a short -term position of $ 4.1 million, effectively balancing long. The total amounted to $ 7.17 million.

Then the merchant aggressively bought jelly on decentralized purses. Since the liquidity on dexes is low, their purchase activity quickly increased the price of the jelly. After the token price increased by more than 400%, the uncovered position of $ 4.1 million was supposed to be liquidated. However, the liquidation was too important to be executed immediately, it was therefore transferred to Hyperliquid automated market vaultthe hyperliquidity supplier. At the same time, the trader quickly withdrew the funds from their two other accounts with an unrealized profit from the price increase of 400% + as a result of their Dex purchase activity. According to Arkham, the merchant managed to withdraw $ 6.26 million, with approximately $ 900,000 in the accounts.

At this stage, Hyperliquid has seized what was going on and limited the merchant’s accounts to reduce the mode only, freezing their ability to withdraw funds. With blocked withdrawals, the merchant then started selling jelly on the market.

This sale helped them recover some of the funds, but it did not completely save their position because hyperliquid then closed the market to $ 0.0095, the same price at which they opened their short exchange. Consequently, all the floating NLPs in the first two accounts were wiped.

According to Abhi, founder of the collective web3 company, said That if the hyperliquid did not close the position, it would have faced a complete liquidation if the jelly reached $ 150 million.

After the incident, the hyperliquidal decided to set up jelly perpetual. The decision was made by a consensus between the hyperliquid validators, aroused the indignation of the cryptographic community due to centralization problems. Arthur Hayer said This hyperliquid was clearly not able to manage the situation with jelly and it is time to stop claiming that hyperliquid is a decentralized platform.

Echoing his feeling, CEO of Bitget Gracy Chen commented::

“The decision to close the jelly market and force the settlement of posts at a favorable price establishes a dangerous precedent,” said Chen. “Confidence – not capital – is the basis of any exchange […] And once lost, it is almost impossible to recover. »»