On March #JELLYJELLYFuturesAlert 26, 2025, there was another incident involving the manipulation of the HLP Vault mechanism on Hyperliquid. An anonymous trader triggered the liquidation of a margin short position on the Jelly-My-Jelly (JELLYJELLY) token, forcing the platform to assume loss-making liabilities.

In response to the user's suspicious actions, the platform also forcibly closed the JELLYJELLY market, blocking part of the trader's unrealized profits. The potential loss volume for HLP reached $12 million.

This is the second major incident with Hyperliquid in March 2025 related to the manipulation of the HLP mechanism, resulting in significant losses. The Incrypted editorial team investigated the details of the 'attack' and analyzed the market's reaction to the situation.