{"id":20374,"date":"2025-03-29T04:54:59","date_gmt":"2025-03-29T04:54:59","guid":{"rendered":"https:\/\/cryptd.in\/hyperliquid-announces-key-risk-management-updates-following-jelly-market-incident\/"},"modified":"2025-03-29T04:54:59","modified_gmt":"2025-03-29T04:54:59","slug":"hyperliquid-announces-key-risk-management-updates-following-jelly-market-incident","status":"publish","type":"post","link":"https:\/\/cryptd.in\/nl\/hyperliquid-announces-key-risk-management-updates-following-jelly-market-incident\/","title":{"rendered":"Hyperliquid Announces Key Risk Management Updates Following JELLY Market Incident"},"content":{"rendered":"

HyperLiquid has announced a series of risk management improvements following a major incident involving its Hyperliquidity Provider (HLP) vault.<\/p>\n

As part of its response, HyperLiquid\u2019s Foundation will refund users who held JELLY long positions at the time of settlement, using a closing price of $0.037555. This move is expected to ensure that all JELLY traders, except those with flagged addresses, receive a settlement price that is beneficial to them.<\/p>\n

The decision follows the delisting of JELLY perpetual contracts after validators identified suspicious market activity.<\/p>\n

What Happened?<\/h2>\n

The incident stemmed<\/a> from a trader allegedly manipulating the price of JELLY, leading to significant unrealized losses for HLP, a market-making vault within HyperLiquid.<\/p>\n

The trader, who held $4.85 million worth of JELLY, combined a short position on HyperLiquid with on-chain spot buys, which triggered a liquidation event that transferred the short position to HLP. As the trader aggressively purchased JELLY on decentralized exchanges, its price surged, which temporarily caused HLP\u2019s unrealized losses to reach $13.5 million.<\/p>\n

With liquidity on decentralized exchanges being relatively low, the price movement was more pronounced. In response, HyperLiquid force-closed the JELLY market and settled it at $0.0095, which is much lower than the $0.50 price reported by decentralized exchange oracles.<\/p>\n

This decision sparked discussions within the crypto community, with some experts questioning<\/a> its legality.<\/p>\n

Meanwhile, Bitget CEO Gracy Chen criticized<\/a> HyperLiquid\u2019s handling of the JELLY delisting and warned it could follow the path of FTX. The exec argued that the decision, made by a small group of validators, raised concerns about decentralization.<\/p>\n

Chen also highlighted structural flaws, such as mixed vault risks and a lack of transparency. Her concerns were echoed by BitMEX co-founder Arthur Hayes, who also questioned HyperLiquid\u2019s decentralization claims.<\/p>\n

HyperLiquid\u2019s Risk Management Updates<\/h2>\n

In light of these events, HyperLiquid has announced<\/a> several key changes to its risk management systems.<\/p>\n

First, the Liquidator vault within HLP will have stricter limits, meaning it will hold a smaller portion of the total HLP account value. It will also be rebalanced less often, and a more advanced system will be used to handle liquidations.<\/p>\n

Second, the automatic deleveraging (ADL) process will only activate if the Liquidator vault\u2019s losses exceed a certain limit. This will help prevent funds from being automatically moved from other vaults to cover losses.<\/p>\n

Third, the platform will adjust open interest (OI) caps more dynamically based on market size to ensure they better reflect current conditions. Lastly, an on-chain voting system will allow validators to decide whether to remove assets that fall below certain thresholds.<\/p>\n

\n

\u201cYesterday is a good reminder to stay humble, hungry, and focused on what matters: building a better financial system owned by the people. Hyperliquid is not perfect, but it will continue to iterate and grow through the collective efforts of builders, traders, and supporters.\u201d<\/p>\n<\/blockquote>\n

De post Hyperliquid Announces Key Risk Management Updates Following JELLY Market Incident<\/a> verscheen eerst op CryptoPotato<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"

HyperLiquid has announced a series of risk management improvements following a major incident involving its Hyperliquidity Provider (HLP) vault. As part of its response, HyperLiquid\u2019s Foundation will refund users who held JELLY long positions at the time of settlement, using a closing price of $0.037555. This move is expected to ensure that all JELLY traders, […]<\/p>\n","protected":false},"author":1,"featured_media":20376,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-20374","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-feeds"],"yoast_head":"\nHyperliquid Announces Key Risk Management Updates Following JELLY Market Incident - cryptd.in<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptd.in\/nl\/hyperliquid-announces-key-risk-management-updates-following-jelly-market-incident\/\" \/>\n<meta property=\"og:locale\" content=\"nl_NL\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Hyperliquid Announces Key Risk Management Updates Following JELLY Market Incident - cryptd.in\" \/>\n<meta property=\"og:description\" content=\"HyperLiquid has announced a series of risk management improvements following a major incident involving its Hyperliquidity Provider (HLP) vault. 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