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What's happening on Hyperliquid involving $JELLY?
1.A trader opened a massive $6M short position on JellyJelly (a small coin, ~$20M mcap at the time).
And at the same time, he opened a long position. Of course, such a huge position with such a high leverage was immediately liquidated.
And what is liquidation? That's right, forced closure of a position. That is, hyperliquid should have bought out these 40% suplay from the order book, thereby pumping the rate to the skies and the trader with the long would have been in the black. A normal exchange does not allow this to happen.
2. At the same time, he opened a long position. Of course, such a huge position with such a high leverage was immediately liquidated.
And what is liquidation? That's right, forced closure of a position.
3.Hyperliquid was left holding the toxic short position, currently at a massive loss (-$10M+ PnL).
Hyperliquid should have bought out these 40% suplay from the order book
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