Hyperliquid validators delist the JELLY perp after a manipulation attempt against the HLP vault

Hyperliquid/HyperCore exchange

A trader combined a large JELLY short on Hyperliquid with spot buying, leaving the HLP vault with ~$13.5M in unrealised losses. Validators voted to delist the JELLY perp and closed positions at $0.0095 instead of the $0.50 oracle price; the Hyper Foundation compensated affected users (excluding flagged addresses).

• Trader held $4.85M JELLY, combined short on Hyperliquid with spot purchases on low-liquidity DEXs.
• HLP inherited short after liquidations; temporary $13.5M unrealised loss, HYPE dropped 20%.
• Validators voted to delist JELLY perp; Hyper Foundation announced compensation for users other than flagged addresses.
• Binance then listed JELLY futures, causing spot price to spike 560%; trader ended with small loss despite manipulation.