Unchained The Chopping Block: Hyperliquid’s Not-So-DeFi Moment, 23andMe, & STABLE Act - Ep. 808
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Mar 29, 2025 The hosts dissect the Hyperliquid controversy, revealing the murky waters of decentralization and liquidity manipulation. They dive into Say Foundation's audacious plan to put 23andMe's genetic data on the blockchain, raising alarm about privacy and ethics. The conversation shifts to the competitive landscape of stablecoin regulations, contrasting the Stable Act with the Genius Act, and examining the impact on financial institutions. Expect witty banter, a dose of market analysis, and a friendly wager on crypto outcomes!
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The Jelly Jelly Incident
- A trader opened an $8 million short on Jelly Jelly, a low-liquidity meme coin, on Hyperliquid.
- They then pumped the spot price off-platform, triggering their own liquidation and creating a short squeeze.
Exchange Warfare
- Binance and OKX listed Jelly Jelly perps after Hyperliquid's HLP acquired a large short position.
- This was seen as exchange warfare, aiming to destabilize Hyperliquid, contrasting with their support for Bybit during its hack.
HLP's Trust Issues
- Hyperliquid's HLP, a crowdfunded market maker, has deficiencies similar to AMMs in order rejection.
- HLP's allocation algorithm is off-chain, requiring trust in a single manager, unlike GLP or JLP.