HyperLiquid validators voted to delist the JELLY token. They also evidently overrode the JELLY price provided by the market oracle in an attempt to reduce their losses, leading an unrelated crypto executive to question "Is that even legal?"
HyperLiquid loses $13.5 million in alleged JELLYJELLY manipulation incident
HyperLiquid's Hyperliquidity Provider market making vault suffered a $13.5 million loss after an alleged market manipulation incident involving a memecoin called JELLYJELLY. A trader holding nearly $5 million (notional) of the token used a combination of shorts and spot purchases to force HyperLiquid to take on the short position. By forcing the token price up with large spot purchases, HLP suffered an unrealized loss of $13.5 million.