Hyperliquid provided some important updates following yesterday’s jelly incident, detailing its main points and security upgrades. The hype prices crashed yesterday, but today they are slowly and steadily.
However, lingering criticism remains about hyperglycemia behavior during the crisis. It threatened itself but responded quickly to non-fatal activities that remained relatively passive in the face of the February Bibit Hack.
High lipids respond to jelly crisis
Popular Dex Hyperliquid is recovering from the aftermath of a major scandal. Yesterday, Hyperliquid landed the jelly after a short aperture caused a loss of nearly $230 million.
This attracted a wave of criticism from the community, which scared the collapse of another FTX style. Today, Hyperliquid posted an answer to the situation.
“Yesterday is a good reminder to focus on humble, hungry and important things. Building a better financial system that people own. Users with a long jelly position at the time of settlement will be refunded by the foundation.
Hyperliquid also detailed some of the security measures needed to avoid another incident similar to jelly squeeze. For one thing, we have implemented stricter token registrations and open interest caps.
Most importantly, the platform makes major tweaks to the liquidation protocol and places some guardrails as the main source of confusion.
So far, it is unclear whether Hyperliquid’s measurements can halt another jelly incident. Without anything else, today’s hype rebounds reflect the sentiment of the restored community.
Less than a week later, the hype had seen strong bullish momentum, but yesterday’s events caused a noticeable crash. However, Altcoin was able to back up today, avoiding even more losses.
High lipid weekly price chart. Source: Beincrypto
Can the community trust hyperliquid?
The crypto community has been strongly criticising how the exchange handles the situation. The concern centers around a simple question: Are high lipids really a dispersed exchange? Listing tokens and seizing investors’ funds is opposed to the centre of the debt.
Zachxbt, a well-known code detective, was particularly frustrated by the company’s actions. A few months ago, he identified a potential North Korean security breaches.
However, it worked quickly to neutralize the jelly trade and proved its ability to respond quickly.
“High lipids have said they can’t do anything because they’ve recently said that illegal flows are dispersed. Now, Hyperliquid has made a centralized decision to quickly close positions at any price of the entity using the protocol as intended.
Ultimately, Hyperliquid has time to update its strategy from the Jelly incident. Yesterday’s event rattled the entire crypto community, but a catastrophe was avoided.
Hopefully, the platform can act in good faith to protect the user fund and its decentralized spirit.
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