Hyperliquid, one of the most preferred platforms in the crypto market, came to the forefront as a platform that was able to move the price of Hype Token despite market collapse. However, the events in recent weeks have shook the reliability of the platform and led to serious criticism. In particular, the fact that Hyperliquid’s liquidation system manipulates the liquidation system, especially by major investors (whales), rapidly reduces the value of the platform.

Hyperliquid and Jelly Manipulation

Hyperliquid, as a decentralized crypto platform, offered an alternative option to the largest stock market. However, safety concerns increased with large investors using the deficits in the system. This began with an uploading a Bitcoin whale to the system of $ 4 million. The same scenario continued with great manipulation on the Jelly Token. As Kriptokoin.com, an investor has invested $ 7 million through three different accounts and made leveraged transactions.

Two of these accounts took a long position, while the other opened a short position. As a result of the coordinated movement, the price of Jelly rose by 400 %. While the exposure sales positions were liquidated, the damage was loaded on Hyperliquid’s guarantee casing (HLP). Following the incident, Hyperliquid removed the Jelly Token from the list and announced that it would compensate for certain users, citing suspicious activities. However, this decision led to a major community reaction.

Community response and decline in Hype Token

The Jelly incident aroused a great impact in the crypto community. Bitget CEO, Hyperliquid’i FTX scandal by comparing it to professionalism said. Similarly, Bitmex Founding Partner Arthur Hayes made statements questioning the allegations of decentralization of the platform. The Hyperliquid team, Jelly, compensated for long position holders, while the other accounts out of the other accounts, the platform “discrimination and favoritism” criticism of criticism.

All these developments have seriously damaged the price of Hype Token. Token, 20 %on a weekly basis and 8 %in the last 24 hours, lost to 12.92 dollars. 35.02 dollars, which he reached three months ago, is 63 %away from the highest level of all time.

New Risk Management Policies Announced

The Hyperliquid team announced four major updates to close the vulnerabilities in the system and to regain investor confidence.

• Liquidation Safe: From now on, the value held in the case will be more limited than the total HLP account value.
• Balancing times: Risk balancing time has been reduced.
• Liquidation Process: A more sophisticated system will be commissioned.
• Excessive leverage Prevention: When the liquidation case reaches a certain level, the automatic leverage lowering mechanism will be activated.

In addition, the verification mechanism that controls the transactions on the platform has been developed. Within the scope of the new management policy, high -risk assets can be removed from the platform with community votes.