PANews reported on March 28 that according to Hyperliquid’s announcement, due to the abnormal trading event in the JELLY market, users holding JELLY long positions will be compensated at a price of 0.037555 at the time of settlement. Except for the marked addresses, this compensation is beneficial to all JELLY traders. Event review:
• A trader self-filled a JELLY position worth 4 million USDC at 0.0095.
• Subsequently, the price of JELLY increased by more than 4 times, and HLP triggered a buyback and liquidated the position, resulting in a loss in the value of the HLP account.
• Although the 4 million USDC position did not exceed the dynamic open interest (OI) limit, it failed to prevent further opening of positions after the automatic cap was triggered.
• The key issue is that after HLP takes over the position, it shares collateral with other strategy components and does not trigger automatic deleveraging (ADL).
Hyperliquid has enhanced risk management, including:
• HLP Liquidator Management: Set stricter account value limits, reduce rebalancing frequency, and introduce more complex repo liquidation logic. If the Liquidator loss exceeds the threshold, it will trigger ADL instead of automatically using other component collateral.
• Dynamic adjustment of OI cap: The open interest cap will be adjusted dynamically based on the market value.
• Asset delisting mechanism: Validators will delist assets below the threshold through on-chain voting.
Hyperliquid promises to continue optimizing the system and enhancing risk prevention capabilities.
