Hyperliquid Exchange (HYPE) Faces Scrutiny Over Market Manipulation and Ethical Concerns - Industry Leaders Sound Alarm

EddieJayonCrypto

 27 Mar 25

tl;dr

Renowned centralized exchange Hyperliquid (HYPE) faces scrutiny following a market manipulation incident involving the JELLY token, raising concerns about its risk control mechanisms. Industry leaders warn of parallels to the collapse of FTX in 2022 due to mismanagement and lack of transparency. Hyp...

Renowned centralized exchange Hyperliquid (HYPE) is under scrutiny after a market manipulation incident involving the JELLY token, which has raised concerns about the effectiveness of its risk control mechanisms. Industry leaders warn of parallels to the collapse of FTX in 2022 due to mismanagement and lack of transparency.

The response to the crisis, including delisting JELLY and settling positions at a lower price, has triggered widespread criticism. Hyperliquid's CEO raised concerns about Bitget's operations and ethical issues in April 2023, adding to the industry-wide scrutiny.

Gracy Chen, CEO of Bitget, called Hyperliquid's actions "immature, unethical, and unprofessional," expressing concerns about its integrity and user trust. She also criticized Hyperliquid's product design, highlighting flaws and warning of potential risks.

Meanwhile, Hyperliquid appeared indifferent to North Korean hackers using stolen funds on the platform, prompting further industry critique. The incident has negatively impacted HYPE's value and Total Value Locked (TVL), with double-digit losses and a significant TVL drop.