Hyperliquid Delists Surging Solana Meme Coin to Avoid Liquidation Crisis
Hyperliquid delisted perpetual futures for the Solana-based meme coin JELLYJELLY to maintain network integrity amid a liquidation crisis. This decision followed a user opening a $6 million leveraged short that became problematic as JELLYJELLY's price increased. Validators voted to delist JELLYJELLY after detecting suspicious market activity. Users, except flagged addresses, will be compensated by the Hyperliquid Foundation. Following the delisting, JELLYJELLY's price surged to $0.043 before settling around $0.023, a 73% increase. The move faced criticism for conflicting with decentralized finance principles. Hyperliquid's native token, HYPE, dropped nearly 14% to $13.85 amid market concerns. Earlier, Hyperliquid had reduced leverage for Bitcoin and Ethereum and increased margin requirements. Binance and OKX launched perpetual futures for JELLYJELLY shortly after the delisting. Concerns about centralization arose due to North Korean-linked wallets using the platform.
