- Hyperliquid Vault risks losing $230M if JELLY JELLY hits $0.15374 amid a short squeeze.
- JELLY JELLY surged 200%, with volume spiking 412%, triggering extreme volatility.
- Binance & OKX listed JELLY JELLY futures as Hyperliquid delisted it, citing market manipulation concerns.
Hyperliquid Vault faces a potential loss of $230 million due to a short squeeze involving the Solana-based memecoin JELLY JELLY. The decentralized exchange took over a short position from a trader who voluntarily liquidated, leaving Hyperliquid exposed to extreme market movements. With JELLY JELLY’s price surging, the situation has intensified, raising concerns among market participants.
Hyperliquid Faces Massive Liquidation Risk
According to a post by Wu Blockchain, the vault has already suffered an unrealized loss of over $9 billion due to the aggressive short squeeze. Analysts warn that if JELLY JELLY reaches $0.15374, Hyperliquid Vault will lose its entire $230 million position. The fast price rise of the memecoin has triggered elevated market volatility leading numerous short sellers and long buyers to focus their attention.
JELLY JELLY has shown a 200% increase in its value within recent hours as its market price stands at $0.04281. Its transaction volume has surged by 412% as traders battle for control. Market volatility has reached levels which some analysts equate to the GameStop short squeeze from 2021. Market participant sentiment remains wary as the situation develops its course.
Binance and OKX List JELLY JELLY Futures Amid Short Squeeze
The volatility continues to grow as Binance and OKX have introduced their perpetual futures contracts for trading JELLY JELLY. It has become the source of discussion within the trading community about whether this development could make the short squeeze process worse. Technical analysts believe these cryptocurrency exchanges released their JELLY JELLY perpetual futures primarily to enhance competitive pressure on market opponents.
The futures listing has fueled additional trading activity, driving up JELLY JELLY’s volume. Meanwhile, Hyperliquid has responded by delisting JELLY JELLY from its platform. The exchange cited suspicious market activity as the reason behind the decision. The move effectively closed existing short positions, yet the effects of the surge continue to ripple through the market.
Solana’s wider network has proven capable of continuing operations while facing market uncertainties. Solana’s native SOL token experiences a decline of 4% as it matches the buying price of $139 in the market. The Solana network attracts new financial institutions because BlackRock among other companies investigate building Solana-based investment products. The rising demand for Solana memecoins has caused a significant transfer of market control from Ethereum networks.
Market Sentiment Remains Uncertain as Volatility Continues
As JELLY JELLY’s rally unfolds, traders remain on high alert. The memecoin’s meteoric rise has intensified liquidations, making it a focal point in the market. Hyperliquid’s risk exposure has raised broader concerns about short squeezes in the cryptocurrency space. Observers are closely watching how exchanges and traders will react in the coming hours.
The recent events provide insight into how unpredictable the world of meme coins can be regarding their effects on leveraged trading. Trading volume increases together with market volatility have caused conditions to become extremely unpredictable. Market analysts believe that the current short squeeze will reshape how all participants maintain their leveraged market operations.
