Hyperliquid Delists JELLY Futures Amid Suspicious Activity Concerns

Hyperliquid Delists JELLY Token Futures Amid Suspicious Activity, Promises User Reimbursement

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  • Hyperliquid is delisting JELLY token perpetual futures following detection of suspicious market activity.
  • The Hyper Foundation will reimburse losses to most users except those with flagged addresses.
  • Despite recent issues, Hyperliquid’s primary liquidity pool has generated positive income of approximately $700,000 in the past day.

Hyperliquid announced it will remove perpetual futures contracts linked to the JELLY token after identifying potential market manipulation. The blockchain network cited “evidence of suspicious market activity” as the primary reason behind this decision.

According to a March 26 statement on X (formerly Twitter), the Hyper Foundation, which operates as Hyperliquid’s nonprofit ecosystem organization, plans to compensate affected users for losses stemming from this incident.

“All users apart from flagged addresses will be made whole from the Hyper Foundation,” Hyperliquid stated in their announcement. “This will be done automatically in the coming days based on onchain data.”

Despite the delisting issue, Hyperliquid reported positive financial performance for its primary liquidity pool. The Hyperliquid Liquidity Pool (HLP) has reportedly generated a net income of roughly $700,000 over the previous 24 hours.

This incident follows earlier challenges for the platform. On March 14, Hyperliquid implemented stricter margin requirements for traders after its liquidity pool suffered multi-million dollar losses during a significant Ethereum liquidation event.

The perpetual futures market, which allows traders to hold leveraged positions indefinitely without expiration dates, has become increasingly popular in cryptocurrency trading but remains susceptible to manipulation and extreme volatility.

This is a developing story, and further information will be added as it becomes available.

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