Hyperliquid’s dealing with of the JELLY token incident has drawn sharp criticism from Gracy Chen, the chief govt officer of Bitget.
After Hyperliquid (HYPE) eliminated JELLY amid an estimated $10.6 million loss and a looming liquidation menace to its treasury, Chen labeled the decentralized change’s actions as “immature, unethical, and unprofessional.”
Hyperliquid delisted the token with a promise to compensate impacted customers. Nevertheless, Chen argued that the losses and the way the state of affairs was dealt with increase questions concerning the change’s integrity. She criticized the workforce for working the DEX “like an offshore centralized change with no know-your-customer or anti-money-laundering checks.”
The Bitget chief govt pointed this out in a publish on X, noting:
“Regardless of presenting itself as an progressive decentralized change with a daring imaginative and prescient, Hyperliquid operates extra like an offshore CEX with no KYC/AML, enabling illicit flows and dangerous actors.”
As such, Chen opined that Hyperliquid’s conduct could level in direction of an “FTX 2.0”, a reference of the collapsed crypto change FTX, which imploded in 2022 with thousands and thousands of customers impacted.
Arthus Hayes, the founder and former CEO of derivatives change BitMEX, additionally shared related take through X.
$HYPE can’t deal with the $JELLY
Let’s cease pretending hyperliquid is decentralised
After which cease pretending merchants truly give a fuck
Guess you $HYPE is again the place is began in brief order trigger degens gonna degen
— Arthur Hayes (@CryptoHayes) March 26, 2025
Hyperliquid halted the jellyjelly market after a $5 million quick guess by a dealer obtained liquidated, throwing the platform into controversy amid a seemingly coordinated pump scheme.
Learn extra: Hyperliquid removes JELLY amid market manipulation accusations, guarantees refunds
The sharp surge in JELLY value, a staggering 230% inside an hour, left the Hyperliquid liquidity pool with a $10.6 million loss. An extra spike would have exploded this to over $240 million. Hyperliquid’s validator set selected to delist the token earlier than this, citing “suspicious market exercise.”
Chen commented:
“The choice to shut the $JELLY market and pressure settlement of positions at a good value units a harmful precedent. Belief—not capital—is the inspiration of any change (CEX and DEX alike), and as soon as misplaced, it’s nearly unattainable to get well.”
Greater than criticizing the delisting, Chen went on to level out what she referred to as “alarming flaws” within the DEX’ design. Amongst these are systemic threat to customers on account of combined vaults, and unrestricted place sizes, which she mentioned has opened it as much as manipulation.
“Except these points are addressed,” she famous, “extra altcoins could also be weaponized towards Hyperliquid—placing it susceptible to changing into the following catastrophic failure in crypto.”
Earlier this month, blockchain sleuth ZachXBT disclosed {that a} Hyperliquid whale who made large high-leverage quick bets on the DEX was certainly a cybercriminal who was utilizing stolen funds.
The HYPE token plunged double digits within the aftermath of the incident.
Learn extra: Bybit CEO reacts to Hyperliquid ETH liquidation, questions DEXs guardrails
