Coin Market

Hyperliquid JELLY ‘exploiter’ could be down $1M, says Arkham

Published

7 days ago

March 27, 2025

The trader behind recent “suspicious market activity” on Hyperliquid that led to the freeze and delisting of the Jelly my Jelly (JELLY) memecoin is potentially down almost $1 million from their actions.

Blockchain analytics firm Arkham Intelligence said in a March 26 post to X that the trader attempted to manipulate the system to profit from price movements, withdrawing collateral before Hyperliquid’s liquidation system could catch up.

The trader opened three accounts within five minutes of each other, two with $2.15 million and $1.9 million long positions, and the third a $4.1 million short, to cancel out the long positions, according to Arkham in a post-mortem report.

“This allowed him to build up leverage in an attempt to drain funds from Hyperliquid,” Arkham said.

Source: Arkham

When the price of Jelly pumped by over 400%, the $4 million short position entered liquidation, but the open short didn’t liquidate immediately because it was too large and instead passed to the Hyperliquidity Provider Vault (HLP), which is supposed to liquidate the position.

At the same time, the trader withdrew collateral from the other two accounts while having a “7-figure positive PnL to withdraw from,” Arkham said.

However, the “exploiter” quickly hit a wall when the accounts, which still had millions in unrealized profit and loss, were restricted to reduce-only orders, forcing them to sell the tokens in the first account on the market to recoup some of the funds.

Source: Arkham

Hyperliquid eventually closed the Jelly token market at a price of 0.0095, the same price as the trader’s short trade, which “zeroed out all floating PnL on the first two exploiter accounts.”

In total, Arkham says the trader withdrew $6.26 million, but at least $1 million is still in the accounts.

“Assuming he can withdraw this at some point in the future, his actions on Hyperliquid have cost him a total of $4,000. If he is unable to, he faces a loss of almost $1 million,” the blockchain analytics firm said.

Hyperliquid has since delisted perpetual futures tied to the JELLY token, citing evidence of suspicious market activity.

Other traders have been using similar tactics

This isn’t the first time Hyperliquid has had issues like this. On March 14, Hyperliquid increased margin requirements for traders after its liquidity pool lost millions of dollars during a massive Ether (ETH) liquidation.

A whale trader intentionally liquidated a roughly $200 million Ether long position on March 12, causing HLP to lose $4 million while unwinding the trade.

Traders have also begun hunting whales on the platform, targeting prominent leveraged positions in a “democratized” attempt to liquidate them.

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Coin Market

DoubleZero protocol announces validator token sale

Published

11 minutes ago

April 2, 2025

The DoubleZero Protocol, a blockchain infrastructure network aiming to multiply speeds and efficiency for distributed networks, announced a validator token sale to sell token-purchase agreements for its native token to prospective validators.

Applications for the sale will be accepted April 2-10 through the CoinList platform, marking its first public token sale in the United States since 2019. The round is only available to accredited investors.

According to the protocol, only validators currently serving the high-throughput Solana, Celestia, Sui, Aptos, and Avalanche networks are eligible to apply.

Interested parties are invited to submit bids declaring a per-unit token price and maximum budgets, which will be aggregated to determine the final sale price offered to the participating validators.

A diagram of the DoubleZero validator funding round process. Source: CoinList

In a statement to Cointelegraph, Austin Federa, co-founder of the Double Zero protocol and former Strategy lead at the Solana Foundation, said:

“The DoubleZero CoinList sale is a first-of-its-kind opportunity for the validators who are already securing the most performant and distributed blockchains. It opens access to infrastructure that will power the next generation of distributed systems.”

“This industry has seen huge investment and innovation at the top of the stack — it is time to revolutionize the physical infrastructure layer powering high-performance distributed systems,” Federa said in the statement.

The token-purchase agreement comes amid a recent uptick in capital fundraising from crypto firms and crypto venture capitalists — suggesting that the market has room to grow in 2025.

DoubleZero protocol targets mainnet launch in the second half of 2025

The DoubleZero Protocol is aiming to launch its mainnet during the second half of 2025 following a successful $28 million fundraising round completed in March.

Crypto venture capital firms Multicoin Capital and Dragonfly Capital led the most recent fundraising round.

First page of the DoubleZero Protocol white paper. Source: DoubleZero

DoubleZero aims to increase the speed and communication of blockchain networks by using a dedicated network of fiber optics to provide the physical infrastructure for high-speed, low-latency blockchain connectivity.

The focus on a dedicated fiber optic network for higher speeds is similar to the shift from dial-up internet that used 56K modems operating through 20th-century telecommunication infrastructure to broadband systems in the early 2000s.

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Coin Market

West Virginia's BTC reserve bill is 'freedom' from a CBDC — State Senator

Published

11 minutes ago

April 2, 2025

West Virginia’s Bitcoin (BTC) strategic reserve bill would give the state more sovereignty from the federal government and freedom from a potential central bank digital currency (CBDC), State Senator Chris Rose told Cointelegraph in an exclusive interview.

“You hear these rumors that there are people at the federal government that will want to have a central bank digital currency,” Rose said. “And people don’t want that. People want decentralized currency. They want freedom.”

The bill, introduced in February, seeks to allow the state treasury to invest up to 10% of public funds in precious metals like gold and silver, stablecoins, or any digital asset that has had a $750 million market capitalization or higher over the last 12 months. Currently, the only digital asset with such a market cap is Bitcoin.

West Virginia State Senator Chris Rose. Source: Cointelegraph

Rose, the bill’s sponsor, said that the reason they decided on the market cap requirement was to allow the state to have exposure to cryptocurrency, but not to get trapped “in any things like memecoins.”

Adopting Bitcoin on the state level would “give us a little more state sovereignty,” Rose added. “And I think that’s one reason why you see a lot of people who normally buy [Bitcoin] for themselves want to see their state government do the same.”

He added that a 10% allocation of state funds would be a “good way to introduce [Bitcoin] to the state” while avoiding any fear from people who don’t understand digital assets. “It’s a good way to cap that where they feel comfortable, but also give us at least a decent exposure as well.”

Bitcoin: “a very powerful” investment and freedom tool

Rose said that one of the roadblocks to getting the bill passed is fear, in particular among those who don’t understand cryptocurrency. “Just like any other state, we have people who understand it. We also have people that don’t understand it, and people are always afraid of what they don’t know.”

He added that “once they understand it, they realize it’s a very powerful investment tool and freedom tool for every one of us to adopt.”

Excerpt of West Virginia Bitcoin reserve bill. Source: West Virginia Legislature

West Virginia Governor Patrick Morrisey, who has envisioned a future state economy powered by crypto and other tech, won’t be a roadblock, Rose said. And the state treasurer, whom Rose consulted before introducing the bill, won’t either.

However, according to WVNews, a West Virginia publication, some lawmakers and financial experts remain skeptical. Investing state funds into Bitcoin may be risky due to the asset’s volatility and price swings, which can cause financial instability and make Bitcoin a controversial choice for state investments.

Although Bitcoin strategic reserve bills have been popping up in state legislatures around the United States, some bills have failed to pass or have scrapped key provisions, including some of those in traditionally conservative states.

Currently, 47 strategic Bitcoin reserve bills have been introduced in 26 states according to Bitcoin Laws. While, in most of the states, the bills have only been introduced or referred to committees, some have made headway in three: Arizona, Oklahoma, and Texas.

Rose clarified that the 10% of state funds allocated to precious metals, stablecoins, or Bitcoin would be sourced from two key areas.

“It would be the assets under the pensions fund and under the severance tax fund,” Rose said. “They would be able to divest some of those ETF funds into these assets. We wanted to keep it separate from the petty cash fund, which is day-to-day, just paying the bills of the state. We wanted to keep it to our longer-term assets,” he added.

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Coin Market

Bitcoin rally to $88.5K obliterates bears as spot volumes soar — Will a tariff war stop the party?

Published

12 minutes ago

April 2, 2025

Bitcoin price caught an unexpected bid by rallying to a session high at $88,500, but will the price gains be capped at a multimonth overhead resistance that is aligned with the 50-day moving average?

Key points:

Bitcoin extended its April. 1 gains as news that the Trump administration had not finalized its “Liberation Day” tariffs emerged.

Israel, Mexico and India have already rolled back their tariffs on US imports or suggested that they will not do “tit for tat” tariffs in response to the expected April 2 US tariffs.

Bitcoin (BTC) trades slightly below a 3-month descending trendline resistance where the price has consistentlybeen rejected during past rallies.

Total market liquidations over the past 12-hour trading period have reached $145 million, with $69.4 million of the figure being Bitcoin shorts.

Data from Kingfisher, CoinGlass and Velo show short liquidations playing a role in today’s push above $88,500.

Crypto market liquidations in the past 12-hours. Source. CoinGlass

For the past few months, Bitcoin price has struggled to hold the gains accrued from rallies driven by leverage. Looking beyond futures markets, there are some positives that suggest that the market structure is slowly transitioning from bearish to bullish.

As shown in the chart below, recent rallies were accompanied by a strong bid in the spot market and the return of the Coinbase Pro premium, leading some analysts to speculate buying from Strategy and other companies focused on building Bitcoin reserves.

Coinbase premium index. Source: CryptoQuant

Over the last two weeks, GameStop, MARA, Metaplanet and Strategy all announced plans to buy more Bitcoin, with GameStop being on the verge of purchasing and Strategy actively adding to its BTC position.

GameStop secures $1.5B for possible BTC purchase. Source: Arkham

In the short-term, sustained spot buy volume at Binance and Coinbase Pro, and the crypto and equities markets’ response to President Donald Trump’s “Liberation Day” tariffs are likely to be the most impactful factors that will influence the current bullish momentum seen in Bitcoin price.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.