- A whale’s risky 20x ETH long bet at $1,459 sparks speculation as Ethereum drops 18.15%, following past million-dollar leveraged trades.
- Hyperliquid faces scrutiny after a $6.2M exploit manipulating JELLY liquidations, raising doubts about DEX security and decentralization.
- Despite rapid growth, Hyperliquid’s intervention in JELLY trading sparks debate as DEXs challenge centralized exchanges amid trust concerns.
According to Spot On Chain, the cryptocurrency market remains volatile as a whale, known as “50x ETH,” makes another high-risk bet. After 15 days of inactivity, the whale bridged $4.52 million USDC into Hyperliquid. Subsequently, they opened a 20x leveraged long position on Ethereum at $1,459. Meanwhile, Ethereum has plunged 18.15% in 24 hours, marking a new yearly low. The whale has previously made significant profits, raising speculation about the outcome of this move.
Whale’s Trading Strategies and Market Impact
This is not the first time the whale has engaged in aggressive leveraged trading. Earlier, they earned $4.06 million by shorting Bitcoin with 40x leverage. Following the successful trade, they withdrew $21.88 million USDC after using $17.82 million as margin. After exiting, the whale reinvested in Ethereum and PAXG, purchasing 3,202 ETH and 1,040 PAXG with $6.11 million and $3.28 million, respectively.
Such trading behavior influences market liquidity and investor sentiment. Large-scale trades introduce volatility, impacting retail and institutional traders. Besides, the whale’s calculated approach raises discussions on whether they are manipulating market conditions.
Hyperliquid Exploit Raises Concerns Over DEX Security
Hyperliquid’s rapid growth has not been without challenges. Recently, the platform suffered a $6.2 million exploit, shaking confidence in decentralized exchanges (DEXs). The attack involved a whale manipulating liquidation parameters using the meme coin, Jelly (JELLY).
The exploiter took two long positions worth $2.15 million and $1.9 million while simultaneously holding a $4.1 million short position. As JELLY’s price surged by 400%, the short position was not liquidated immediately due to its size. Instead, Hyperliquid’s HLP Vault absorbed it, enabling the whale to profit immensely.
Despite the exploit, the whale still retains 10% of the JELLY supply, valued at nearly $2 million. However, Hyperliquid’s response—freezing and delisting JELLY—has been criticized for contradicting the platform’s decentralization principles. Critics argue this intervention mirrors centralized exchange behavior, reducing trust in DEXs.
The Future of DEXs and Market Stability
DEXs continue to pose a threat to centralized exchanges in spite of security worries. Hyperliquid has outperformed BitMEX and Kraken in terms of trading volume. But persistent manipulations and intrusions cast doubt on sustained trust.
