<ul><li>Hyperliquid exchange suffered over $12M in losses and $5M in short exposure due to the price manipulation of the low-liquidity Jelly token on their decentralized platform.</li><li>A whale dumped 126M JELLY tokens, causing the price to crash, and then bought back the tokens, inflating its value by 500%, resulting in unrealized losses of $12.3M for Hyperliquid's liquidity vault.</li><li>The listing of volatile and low-liquidity tokens like JELLY exposed Hyperliquid to risks that could have been mitigated by implementing stricter safeguards and improved risk assessment protocols.</li><li>The exploit raises concerns about the safety of the Jelly token, although the blame primarily lies with Hyperliquid for not implementing adequate measures to mitigate the risks associated with low-liquidity tokens.</li></ul>

What Is the JellyJelly? The Token at the Center of the Hyperliquid Exploit

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