Company Directory - Hyperliquid
Company Details - Hyperliquid
Hyperliquid
Hyperliquid is a decentralized perpetual trading platform that allows users to trade various cryptocurrencies with leveraged positions.
CCI Score
CCI Score: Hyperliquid
-13.33
0.01%
Latest Event
Hyperliquid Market Manipulation and JELLY Incident
In March 2025, Hyperliquid faced severe criticism following a market manipulation incident involving the JELLY token. The platform’s response—involving the delisting of JELLY, settling positions at $0.0095 instead of the oracle price of $0.50, and incurring a $12 million loss in its Hyperliquidity Provider vault—has raised significant concerns about its risk management, transparency, and ethical business practices.
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ENABLER
Hyperliquid is currently rated as an Enabler.
Latest Events
- MAR272025
In March 2025, Hyperliquid faced severe criticism following a market manipulation incident involving the JELLY token. The platform’s response—involving the delisting of JELLY, settling positions at $0.0095 instead of the oracle price of $0.50, and incurring a $12 million loss in its Hyperliquidity Provider vault—has raised significant concerns about its risk management, transparency, and ethical business practices.
-70
Business Practices and Ethical Responsibility
March 31
The incident reveals serious shortcomings in Hyperliquid's risk management and transparency. By overriding the oracle price and delisting the token to mitigate liabilities—despite a significant loss—Hyperliquid demonstrated unethical business practices that undermine user trust.
Hyperliquid JELLY Scandal: Is It the Next FTX in the Making? - BeInCrypto
-50
Technology and Services Impact
March 31
Design and technical flaws such as unlimited position sizes and mixed vaults significantly contributed to the vulnerability that enabled market manipulation. These technical shortcomings reflect a broader failure to provide a secure and reliable trading platform.
Hyperliquid JELLY Scandal: Is It the Next FTX in the Making? - BeInCrypto
-40
Economic and Structural Influence
March 31
The financial repercussions of the incident—including a $12 million loss and a significant drop in Total Value Locked (TVL)—highlight the economic instability generated by Hyperliquid's mismanagement. This negatively impacts market confidence and underscores an underlying economic vulnerability.
Hyperliquid JELLY Scandal: Is It the Next FTX in the Making? - BeInCrypto
- MAR272025
Hyperliquid forced the delisting of JELLY token perpetual contracts following allegations of whale manipulation. The intervention, which resulted in significant losses for liquidity providers, has sparked backlash from the community and industry critics, who argue that the move undermines the core decentralized principles of the platform.
-40
Public and Political Behavior
March 31
The forced intervention by Hyperliquid reflects a centralized, authoritarian approach in a system that is supposed to be decentralized. This action undermines public trust and raises concerns about the platform's commitment to democratic market practices.
Hyperliquid Faces Backlash Over Forced Delisting of JELLY Token Contracts
-70
Business Practices and Ethical Responsibility
March 31
The decision to forcibly delist the JELLY token contracts is viewed as an unethical business practice. It not only led to significant losses for liquidity providers but also set a precedent for centralized control that contradicts the decentralized ethos of the platform.
Hyperliquid Faces Backlash Over Forced Delisting of JELLY Token Contracts
- JAN082025
In response to criticisms from validators regarding its centralized and opaque validator selection process, Hyperliquid issued a press statement clarifying that validator positions are earned based on testnet performance and announced plans to further decentralize the ecosystem through its new Foundation Delegation Program, as well as a commitment to open source its code once development stabilizes.
+20
Public and Political Behavior
March 31
The company's response to validator criticisms asserts that its validator selections are merit-based and includes a plan to further decentralize the network. This approach promotes more democratic participation and transparency, aligning with anti-authoritarian values.
Hyperliquid Under Fire As Validators Expose Key Decentralization Flaws
+40
Business Practices and Ethical Responsibility
March 31
Hyperliquid’s announcement of the Foundation Delegation Program and its commitment to transparency through eventual open-sourcing reflect a responsible business practice. This corrective measure addresses concerns of closed operations, supporting ethical corporate behavior.
Hyperliquid Under Fire As Validators Expose Key Decentralization Flaws
+50
Technology and Services Impact
March 31
The planned transition to an open-source model and increased validator participation directly improve technological transparency and reduce centralization risks. This proactive move minimizes potential abuses associated with concentrated platform control.
Hyperliquid Under Fire As Validators Expose Key Decentralization Flaws
- JAN082025
On January 8, 2025, Hyperliquid addressed community concerns regarding its validator mechanism by denying allegations that validator seats are buyable and announcing a Foundation Delegation Program to promote decentralization and transparency. The company also reaffirmed its commitment to open API accessibility and ongoing improvements in the network onboarding process.
+60
Public and Political Behavior
March 31
Hyperliquid's proactive public communication on X and detailed clarification of its validator qualification process demonstrate a commitment to transparent political behavior and responsive engagement with its community, which supports democratic principles by addressing concerns openly.
+40
Technology and Services Impact
March 31
The announcement of the Foundation Delegation Program and the clarification that API access is open serve to promote a decentralized and inclusive technology environment, countering potential centralizing or opaque practices that could otherwise facilitate authoritarian controls.
- DEC232024
Allegations have emerged linking wallets associated with North Korea to suspicious trading activity on Hyperliquid, leading to massive fund withdrawals and a sharp token price decline. The platform is under scrutiny for potential security lapses even as it denies any exploit and points to its bug bounty program and adherence to industry standards.
-60
Technology and Services Impact
March 31
The allegations of North Korean-linked wallet activity and significant fund outflows reveal critical vulnerabilities in Hyperliquid's technology infrastructure. Such weaknesses can inadvertently facilitate exploitation by authoritarian actors, raising concerns under the 'Technology and Services Impact' category.
Hyperliquid Under Fire: Security Concerns Amid Allegations of North Korean Exploitation
-30
Business Practices and Ethical Responsibility
March 31
The incident, marked by drastic fund outflows and a significant drop in token value, underscores lapses in risk management and security measures. This shortfall in protecting user assets reflects poorly on Hyperliquid's business practices and ethical responsibility in safeguarding its platform.
Hyperliquid Under Fire: Security Concerns Amid Allegations of North Korean Exploitation
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