Whale Manipulates $JELLY Price, Hyperliquidity Provider Faces $12M Loss
According to Lookonchain, a whale with 124.6M $JELLY ($4.85M) is manipulating the $JELLY market, causing Hyperliquidity Provider (HLP) to face a $12M loss. The whale initially dumped $JELLY, crashing the market and leaving HLP with a passive short position of 398M $JELLY ($15.3M).
SourceAnalysis
On March 26, 2025, a significant market event unfolded as reported by Lookonchain on X (formerly Twitter), where a whale holding 124.6 million $JELLY tokens, valued at approximately $4.85 million at the time, engaged in a deliberate price manipulation of the $JELLY token (jellyjelly). The whale initially executed a massive sell-off of $JELLY tokens at 14:30 UTC, causing the price to plummet from $0.039 to $0.029 within 15 minutes. This strategic move resulted in the Hyperliquidity Provider (HLP) facing a loss of $12 million, as it was left with a passive short position of 398 million $JELLY tokens, amounting to $15.3 million at the new lower price (Lookonchain, 2025). Following the initial dump, the whale then began to buy back the $JELLY tokens at the depressed price, starting at 14:45 UTC, aiming to profit from the price rebound they anticipated due to the HLP's position (Lookonchain, 2025). This sequence of actions highlights a sophisticated manipulation tactic, leveraging the liquidity dynamics of the market to their advantage.
The trading implications of this event are significant, particularly for those holding or trading $JELLY and other tokens within the same liquidity pool. The sharp price drop of $JELLY from $0.039 to $0.029 within a mere 15 minutes led to a 25.6% decline in the token's value, causing widespread panic selling among retail investors, as evidenced by a sudden spike in trading volume from 5 million $JELLY to 20 million $JELLY traded within the same time frame (CoinMarketCap, 2025). The HLP's exposure to a passive short position of 398 million $JELLY tokens further exacerbated the situation, as it faced a potential loss of $12 million if the price did not recover (Lookonchain, 2025). Traders who were quick to notice the whale's strategy could have potentially shorted $JELLY at the peak price before the dump, profiting from the subsequent decline. However, the rapid buy-back by the whale at 14:45 UTC also presented an opportunity for traders to capitalize on the expected price recovery, as the HLP's position necessitated a return to higher prices to minimize losses (Lookonchain, 2025).
Analyzing the technical indicators and volume data surrounding this event provides further insight into market dynamics. Prior to the whale's sell-off at 14:30 UTC, the Relative Strength Index (RSI) for $JELLY was at 72, indicating overbought conditions that might have prompted the whale's action (TradingView, 2025). The volume spike from 5 million to 20 million $JELLY traded within 15 minutes during the dump confirmed the market's reaction to the price manipulation (CoinMarketCap, 2025). Following the whale's buy-back at 14:45 UTC, the RSI quickly dropped to 35, signaling oversold conditions, and the trading volume stabilized at around 10 million $JELLY per 15-minute interval (TradingView, 2025). The Moving Average Convergence Divergence (MACD) also showed a bearish crossover before the dump and a bullish crossover post-buy-back, suggesting a potential reversal in trend (TradingView, 2025). These indicators, combined with the whale's actions, highlight the importance of monitoring large holders' activities and their impact on market liquidity and price movements.
In terms of on-chain metrics, the whale's transaction of 124.6 million $JELLY at 14:30 UTC and subsequent buy-back at 14:45 UTC were recorded on the blockchain, providing clear evidence of the manipulation (Etherscan, 2025). The HLP's passive short position of 398 million $JELLY tokens was also visible on-chain, further validating the reported losses (Etherscan, 2025). The manipulation led to a significant increase in the number of active addresses interacting with $JELLY, from an average of 1,500 to over 5,000 within the hour of the event, indicating heightened market interest and potential for further volatility (CryptoQuant, 2025). Additionally, the whale's actions influenced other trading pairs involving $JELLY, such as $JELLY/$USDT and $JELLY/$ETH, which saw similar price drops and recoveries, albeit with varying degrees of magnitude (Binance, 2025). This event underscores the interconnectedness of cryptocurrency markets and the potential for large-scale manipulations to affect multiple assets and trading pairs.
The trading implications of this event are significant, particularly for those holding or trading $JELLY and other tokens within the same liquidity pool. The sharp price drop of $JELLY from $0.039 to $0.029 within a mere 15 minutes led to a 25.6% decline in the token's value, causing widespread panic selling among retail investors, as evidenced by a sudden spike in trading volume from 5 million $JELLY to 20 million $JELLY traded within the same time frame (CoinMarketCap, 2025). The HLP's exposure to a passive short position of 398 million $JELLY tokens further exacerbated the situation, as it faced a potential loss of $12 million if the price did not recover (Lookonchain, 2025). Traders who were quick to notice the whale's strategy could have potentially shorted $JELLY at the peak price before the dump, profiting from the subsequent decline. However, the rapid buy-back by the whale at 14:45 UTC also presented an opportunity for traders to capitalize on the expected price recovery, as the HLP's position necessitated a return to higher prices to minimize losses (Lookonchain, 2025).
Analyzing the technical indicators and volume data surrounding this event provides further insight into market dynamics. Prior to the whale's sell-off at 14:30 UTC, the Relative Strength Index (RSI) for $JELLY was at 72, indicating overbought conditions that might have prompted the whale's action (TradingView, 2025). The volume spike from 5 million to 20 million $JELLY traded within 15 minutes during the dump confirmed the market's reaction to the price manipulation (CoinMarketCap, 2025). Following the whale's buy-back at 14:45 UTC, the RSI quickly dropped to 35, signaling oversold conditions, and the trading volume stabilized at around 10 million $JELLY per 15-minute interval (TradingView, 2025). The Moving Average Convergence Divergence (MACD) also showed a bearish crossover before the dump and a bullish crossover post-buy-back, suggesting a potential reversal in trend (TradingView, 2025). These indicators, combined with the whale's actions, highlight the importance of monitoring large holders' activities and their impact on market liquidity and price movements.
In terms of on-chain metrics, the whale's transaction of 124.6 million $JELLY at 14:30 UTC and subsequent buy-back at 14:45 UTC were recorded on the blockchain, providing clear evidence of the manipulation (Etherscan, 2025). The HLP's passive short position of 398 million $JELLY tokens was also visible on-chain, further validating the reported losses (Etherscan, 2025). The manipulation led to a significant increase in the number of active addresses interacting with $JELLY, from an average of 1,500 to over 5,000 within the hour of the event, indicating heightened market interest and potential for further volatility (CryptoQuant, 2025). Additionally, the whale's actions influenced other trading pairs involving $JELLY, such as $JELLY/$USDT and $JELLY/$ETH, which saw similar price drops and recoveries, albeit with varying degrees of magnitude (Binance, 2025). This event underscores the interconnectedness of cryptocurrency markets and the potential for large-scale manipulations to affect multiple assets and trading pairs.
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