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Highlights
- Hyperliquid faces the potiential liquidation of its entire holding.
- The market maker is in the middle of a short squeeze involving a Solana memecoin.
- Market participants have their eyes peeled the $0.15374 price point for JELLY
Jelly-My-Jelly (JELLY JELLY) has spiked by over 100% over the last hour but the surge in value is triggering a wave of anxiety for Hyperliquid Vault. The automated market maker is in the middle of a short squeeze and could lose a fortune if the Solana memecoin continues to surge.
Solana Memecoin Threatens Hyperliquid Vault’s Holdings
According to a post by Wu Blockchain, Hyperliquid Vault is facing the possibility of a grim liquidation of its position. The decentralized exchange is in the middle of a short squeeze of JELLY JELLY after taking up the short position from a trader who voluntarily liquidated his position.
At the moment, Hyperliquid Vault is grappling with an unrealized loss of over $9 billion since betting against the Solana memecoin. Hyperliquid will lose over $230 million to the Solana memecoin short squeeze should prices spike to over 1 cent.
“If jellyjelly reaches $0.15374, Hyperliquid Vault will lose its entire $230 million in funds,” said Wu Blockchain.
JELLY JELLY has risen by over 200% at press time and currently trades at $0.04281. Meanwhile, transaction volume has surged by 412% in hours as the battle between the short sellers and long buyers continues to rage. For Hyperliquid, things are even grimmer given the frenetic pace of the Solana memecoin short-squeeze.
The move comes on the heels of Gamestop’s Bitcoin purchases, a company whose stock was the subject of the famous GME short squeeze in 2021.
Binance and OKX List Futures On JELLY JELLY
Centralized exchanges Binance and OKX have listed perpetual futures trading for JELLY JELLY amid the short squeeze saga. While the futures listing has elicited cheers from long buyers, critics are questioning the timing of the move.
“What a truly scum of earth move by Binance and OKX,” said AviFelman on X. “Pure move to try and bury a competitor.”
Following the future listing of the Solana memecoin, Hyperliquid has delisted the JELLY JELLY from its platform, effectively closing the shorts. Despite the buzz around memecoins, Ark Invest CEO Cathie Woods predicts that memecoins will be worthless in the coming years.
“After evidence of suspicious market activity, the validator set convened and voted to delist JELLY perps,” read a Hyperliquid statement on X.
Amid the chaos, Solana (SOL) is trading at $139, down 4% over the last day. Solana’s price is eyeing $300 in the wake of BlackRock turning to the network for its BUIDL fund. Solana memecoins are rippling with frenetic activity with the ecosystem stealing a chunk of the market share from Ethereum.
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