Singapore – Hyperliquid, a leading decentralized finance platform, has responded to concerns within the JELLY market with a proactive approach aimed at increasing transparency and restoring market confidence.
Following a suspicious series of market movements that resulted in the delisting of JELLY perpetual contracts, Hyperliquid swiftly took action through its validator set to protect traders and maintain trust. To mitigate losses for affected traders, the Hyper Foundation committed to compensating them via on-chain data, excluding flagged addresses from receiving funds. This decision was officially announced on March 27 in a tweet posted on the platform’s social media account.
In response to criticism from industry experts, such as Bitget’s Gracy Chen, who likened the situation to past market tragedies, Hyperliquid implemented significant risk management upgrades to enhance security and transparency. One notable upgrade is the implementation of fully on-chain validator voting, which allows for a more decentralized and transparent decision-making process when it comes to delisting assets. Validators within the Hyper Foundation recently conducted a test vote to delist MYRO perps, showcasing the effectiveness of the new voting mechanism.
Market indicators have shown that Hyperliquid’s price action has experienced bearish trends since the JELLY incident, with the HYPE price declining by approximately 28%. However, with the implementation of the updated risk management system, the bearish pressure is gradually subsiding, indicating a potential bullish reversal if the demand zone at around $12.20 remains strong.
Furthermore, HYPE Open Interest is showing signs of revival following the scandal, with investors expressing optimism as Hyperliquid continues to enhance its security measures and voting protocols. The platform has also hinted at additional technical improvements in the future to further enhance ecosystem transparency, according to recent social media updates.
Overall, Hyperliquid’s strategic responses to market concerns demonstrate a commitment to prioritizing user protection, maintaining trust, and fostering a more transparent and secure trading environment within the decentralized finance space.