Arkham: Sudden Spike in Open Interest

Arkham announced on social media that open interest in JELLYJELLY rose dramatically in a very short time. According to the platform’s data, this increase occurred at a speed and intensity beyond typical market behavior. Analysis suggests the surge may not be the result of random trading activity but could potentially involve coordinated actions by a specific group. Arkham representatives emphasized that the spike in open positions does not fully align with organic market dynamics, raising the possibility of a coordinated trading strategy. Open interest growth was particularly concentrated on major derivatives exchanges such as OKX and Bybit, indicating that highly leveraged futures positions were opened aggressively. Such activity is often associated with short-term price steering and increased volatility, prompting analysts to urge caution among market participants.

Imbalance Between Spot and Derivatives Markets

During the same period, JELLYJELLY was observed to be gradually accumulated on centralized exchanges like MEXC, KuCoin, and Bitget. However, spot market accumulation remained relatively limited compared to the surge in derivatives activity. According to derivatives data platform Coinglass, JELLYJELLY’s 24-hour futures trading volume reached $104 million, while spot trading volume stood at only $1.45 million. This significant discrepancy suggests that the price movement may have been largely supported by leveraged positions rather than organic spot demand.

Price Surged 19%

Exchange data shows that JELLYJELLY gained 19% over the past 24 hours, reaching $0.093. However, for a token with a market capitalization of approximately $68.21 million, derivatives volume exceeding $100 million is considered unusual by analysts. Experts warn that such a high derivatives-to-spot volume ratio can create conditions for sharp short-term price swings and potential liquidation cascades.

Manipulation Allegations Resurface

The simultaneous increase in open interest alongside limited spot accumulation strengthens the possibility of an organized price movement. In such scenarios, prices can first be driven higher in derivatives markets before experiencing abrupt corrections through sudden selling pressure. The elevated futures volume, rising open interest, and clear spot-derivatives imbalance in JELLYJELLY suggest heightened volatility risk. On-chain and derivatives data indicate that the price movement may be backed by unusual capital flows, leading analysts to emphasize that investors should remain cautious amid the risk of significant volatility.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Suspicious Transactions Triggered a Sharp Surge in This Altcoin! appeared first on Coin Engineer.

Liquidation Process Bypassed Using HLP Vault

When the price of JELLY surged by 400%, the large short position held by the whale was not immediately liquidated. Instead, it was absorbed into the Hyperliquidity Provider Vault (HLP), a mechanism designed to process large-scale liquidations. Despite efforts to contain the exploit, the attacker still held 10% of JELLY’s total supply, worth nearly $2 million as of March 27.

You Might Be Interested In: Elon Musk Talks About the Name of a New Memecoin!

Following the incident, Hyperliquid delisted JELLY, citing “suspicious market activity.” This move sparked criticism from the community, with some users questioning the platform’s decentralization. According to Bitget Research analyst Ryan Lee, Hyperliquid’s actions may damage trust in DEXs if interventions appear overly centralized.

DEX Growth Threatens CEX Dominance

Despite the exploit, decentralized exchanges (DEXs) like Hyperliquid are increasingly challenging centralized platforms (CEXs). CoinGecko co-founder Bobby Ong pointed out that some in the industry believe major CEXs are feeling threatened and may be fighting back to protect their market share.

“It’s clear that CEXes are feeling threatened by DEXes, and are not going to see their market share erode without putting on a fight,” Ong said in an April 3 post on X (formerly Twitter).

Hyperliquid Climbs the Ranks

According to CoinGecko data, Hyperliquid is now the eighth-largest perpetual futures exchange by volume, outperforming platforms like HTX, Kraken, and BitMEX. In terms of open interest, Hyperliquid ranks 12th globally, with over $3 billion in 24-hour open interest—though still behind Binance’s $19.5 billion.

While DEXs offer transparency and non-custodial trading, incidents like this highlight the ongoing security and trust challenges facing emerging decentralized finance platforms. How protocols like Hyperliquid respond will be crucial in shaping investor confidence going forward.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Decentralized Exchanges Gain Ground Despite Hyperliquid Exploit! appeared first on Coin Engineer.