Unchained Hyperliquid Saved Itself a $15 Million Loss, but Sparked Criticism - Ep. 807
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Mar 28, 2025 
Doug Colkitt, Founder and CEO of Ambient Finance, sheds light on the recent whale attack that nearly cost Hyperliquid $15 million. He discusses how a memecoin was leveraged for this high-stakes manipulation. Colkitt navigates the complexities of perpetual swaps, while diving into the controversial decisions made by Hyperliquid that raised eyebrows in the DeFi community. He also tackles the criticism surrounding these actions, potential preventative measures for future attacks, and the implications for decentralized trading practices.
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Hyperliquid Whale Attack
- A whale manipulated the low-liquidity memecoin $JELLY to attack Hyperliquid’s vault.
- This resulted in a significant loss for Hyperliquid and controversy within the crypto community.
Hyperliquid's Controversial Response
- Hyperliquid intervened to mitigate the losses by manually delisting the $JELLY market.
- Instead of closing positions at the manipulated price, they chose a price prior to the manipulation, sparking debate.
Binance and OKEx Involvement
- Binance and OKEx listed $JELLY amidst the attack, possibly exacerbating the situation for Hyperliquid.
- This move was viewed by some as a deliberate attempt to harm a competitor.