Hyperliquid whale still holds 10% of JELLY memecoin after $6.2M exploit

A crypto whale who supposedly controlled the reward of the Jelly my Jelly (JELLY) memecoin on decentralized exchange Hyperliquid still holds almost $2 million worth of the token, according to blockchain experts.

The unknown whale made a minimum of $6.26 million in earnings by making use of the liquidation criteria on Hyperliquid.

According to a postmortem report by blockchain intelligence company Arkham, the whale opened 3 big trading positions within 5 minutes: 2 long positions worth $2.15 million and $1.9 million, and a $4.1 million brief position that efficiently balanced out the longs.

When the rate of JELLY increased by 400%, the $4 million brief position wasn’t right away liquidated due to its size. Rather, it was taken in into the Hyperliquidity Company Vault (HLP), which is developed to liquidate big positions.

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In more unpleasant discoveries, the entity might still be holding almost $2 million worth of the token’s supply, according to blockchain detective ZachXBT.

” 5 addresses connected to the entity who controlled JELLY on Hyperliquid still hold ~ 10% of the JELLY supply on Solana ($ 1.9 M+). All JELLY was bought because March 22, 2025,” he composed in a March 26 Telegram post.

The entity continues offering the tokens in spite of Hyperliquid freezing and delisting the memecoin, pointing out “proof of suspicious market activity” including trading instruments.

The JELLY token’s collapse is the current in a series of memecoin scandals and expert plans aiming to profit from financier buzz.

The make use of happened just 2 weeks after a Wolf of Wall Street-inspired memecoin– released by the Authorities Melania Meme (MELANIA) and Libra (LIBRA) token co-creator Hayden Davis– crashed over 99% after releasing with an 80% expert supply.

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Lessons from the JELLY memecoin disaster: “Buzz without principles”

” The JELLY event is a clear tip that buzz without principles does not last,” according to Alvin Kan, primary running officer at Bitget Wallet.

” In DeFi, momentum can drive short-term attention, however it does not develop sustainable platforms,” Kan informed Cointelegraph, including:

” Projects developed on speculation, not energy, will continue to get exposed– specifically in a market where capital moves rapidly and unforgivingly.”

While Hyperliquid’s reaction cushioned short-term damage, it raises more concerns about decentralization, as comparable interventions “blur the line in between decentralized values and centralized control.”

The Hyper Structure, Hyperliquid’s community not-for-profit, will “instantly” compensate most impacted users for losses connected to the event, other than the addresses coming from the exploiter.

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