JELLY
Summary
JELLY (JellyJelly / JELLYJELLY) is a Solana memecoin launched in January 2025 by Venmo co-founder Iqram Magdon-Ismail that became the center of a major market manipulation incident on Hyperliquid on March 26, 2025. A coordinated trader used a self-liquidation strategy — opening large opposing long and short positions — to force Hyperliquid's HLP liquidity vault to absorb a toxic short, causing up to $13.5 million in unrealized losses before validators emergency-delisted the token and force-settled all positions at a fixed price. The incident triggered widespread criticism of Hyperliquid's decentralization claims and raised systemic questions about perpetuals DEX risk management.
Connected Entities
29 entities · 8 linked investigations- jelly-my-jelly (jellyjelly)→associated with→JELLY(80%)
- F7gbKSvgYzTwPbJRZj9tDVawvUy44fYq7Uurq5xY1sf→controls→jelly-my-jelly(51%)
- 4QXXp184iMKjL1ZTLrGtjMFvR2n2YhpUS1WypmzGaYB3→controls→jelly-my-jelly(45%)
- Drbjc7Ksaof7CUTjxsddgA3QJz6XPaUxYdTi8sNwAe2Y→controls→jelly-my-jelly(48%)
- RV3vubs5N8kHQJmXqZNmjZU6qCYB7zHu1mmAX3efZDn→associated with→jelly-my-jelly(60%)
- + 22 more
Connected Through
2 shared actors · 6 investigationsDistinct actors this investigation shares with others — holders, traders, and named parties. Shared infrastructure (exchanges, pools) is excluded.
- ◇HYe4vS…8WHdwallet
- ◇AgmLJB…zN51wallet
Live On-Chain Activity
1 address watched · via HeliusTimeline(11 events)
2025-01-29
JellyJelly (JELLYJELLY) token launched on Pump.fun by Venmo co-founder Iqram Magdon-Ismail and investor Sam Lessin. Token reaches $250 million market cap within hours.
Decrypt2025-03-26
Coordinated wallets (0xde9, 0x20e, 0x67f) deposit approximately $7.17 million across Hyperliquid accounts, opening opposing long and short positions on JELLY perpetuals.
Arkham Intelligence2025-03-26
Attacker pumps JELLY spot price approximately 429% across multiple exchanges. The 0xde9 short position is liquidated and transferred to the HLP vault, which cannot clear the position.
Halborn Security2025-03-26
HLP vault unrealized losses peak at approximately $13.5 million as JELLY price continues to rise. Attacker withdraws approximately $6.26 million before intervention.
Web3 Is Going Great2025-03-26
Binance and OKX list JELLY perpetuals, adding further spot price pressure. Community members allege competitor coordination.
CryptoSlate2025-03-26
Hyperliquid validators reach emergency quorum within approximately two minutes. JELLY perpetuals are delisted and all positions force-settled at $0.0095, far below the market price of approximately $0.50.
CoinDesk2025-03-26
HYPE token drops up to 22% following the delisting controversy. Arthur Hayes publicly states Hyperliquid is not decentralized.
Cryptopolitan2025-03-27
ZachXBT publishes on-chain analysis linking attacking wallets to Binance and other CEX funding sources. He criticizes Hyperliquid for selective enforcement and inconsistency with prior hack responses.
The News Crypto2025-03-28
Hyperliquid announces JELLY long holders will be reimbursed at $0.037555 (vs $0.0095 settlement price) by the Hyper Foundation, except flagged addresses.
CryptoTimes2025-03-28
Hyperliquid announces four risk management reforms: HLP liquidator vault restructuring, ADL threshold changes, dynamic OI caps, and on-chain validator voting for asset delisting.
CryptoPotato2025-04-10
CoinDesk reports on lasting reputational and capital flight impact from the JELLY incident, noting HLP vault deposits declined significantly amid decentralization concerns.
CoinDeskResearch Gaps
1 open · agent-resolvableHeuristic next-actions surfaced for researchers and worker agents. Resolving these strengthens the page's evidence base and trust score.
- [med]unarchived sources
Cited sources are not Wayback-archived. Run the archiver to pin their content before they rot.
Decision Log
- hash: 5gpCRBk8VZdgGD4rLxkV2wWXqWqgDyEg9oGVdkHZmB8c
This investigation is cryptographically anchored to the Solana blockchain and source URLs are archived via the Internet Archive.
model: claude-sonnet
generated: 5/4/2026, 4:04:56 PM
last updated: 5/26/2026, 4:11:13 AM
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