According to Aggr News, the Hyper Foundation has announced plans to compensate users, excluding those with flagged addresses, as the HLP Vault has been officially marked to a $700K profit and loss (PNL). This development is crucial for traders focusing on Hyper Foundation's financial maneuvers and provides insight into the organization's risk management strategy, specifically regarding how flagged addresses are handled within compensation plans.

According to @EmberCN, there is a significant interest in the potential impact of $JELLY on Hyperliquid's HLP vault. However, the risk is predominantly limited to the liquidation address handling the $JELLY short position. This address holds $50 million and is currently managing a short position of 398 million $JELLY with a liquidation price of $0.141. The risk does not extend to the other two strategy addresses of the HLP vault.

According to EmberCN, a user has exploited Hyperliquid's margin management system by withdrawing collateral, causing Hyperliquid to take over liquidated positions. This manipulation involved offloading 398 million $JELLY short positions onto Hyperliquid, resulting in substantial unrealized losses for the Hyperliquid HLP vault.

According to EmberCN, Hyperliquid's liquidation address took 7 hours to gradually close a 160,000 ETH long position ($306 million) acquired from [Hyperliquid 50x trader]. The position was taken over at $1915 and closed at an average price of $1895, resulting in a $3.23 million loss for the HLP vault. This detailed process highlights the challenges and costs associated with managing large-scale liquidations in the crypto market.