Post
Hyperliquid was attacked by lightning again. What do you think about this?
Replies
In the middle of the night when the cryptocurrency market was turbulent, a precise attack on the decentralized derivatives exchange Hyperliquid was quietly staged. On March 26, a trader pushed Hyperliquid into the abyss of liquidity crisis and liquidation risk through a huge short order of 430 million JELLYJELLY tokens. With the price of JELLYJELLY soaring by 560% and the top exchanges launching contracts at lightning speed, Hyperliquid was forced to make a life-or-death choice between the principle of decentralization and the security of user assets. This offensive and defensive battle, which lasted only 2.5 hours, not only exposed the governance paradox of decentralized exchanges, but also became a textbook case of capital hunting in the crypto world.
If Hyperliquid chooses to intervene manually, it will face community doubts about its identity as a decentralized exchange. If the orders are left alone, a large number of users who choose to store their funds in the Hyperliquid vault will suffer huge losses. The sophistication of this conspiracy strategy design can be called the contemporary two peaches kill three warriors.
It seems that Hyperliquid has retained the reputation of decentralized governance through voting. But later, according to @spreekaway's revelation, Hyperliquid's voting validators are all votes from the Hyper Foundation. This was also criticized by the community. This vote was still not a resolution reached by the entire community, but an official decision of Hyperliquid. Although the matter was urgent, from this perspective, Hyperliquid's decentralized governance is still covered up.
Hyperliquid's user trust has also suffered a real blow. During the short position holding process, PANews found that many funds on the chain chose to withdraw funds from the vault to avoid joint losses in the event of liquidation. Although the yield of the Hyperliquid vault was eventually pulled back to normal levels, the deposit amount decreased by 90 million US dollars in a short period of time, a decrease of 30%. From this perspective, Hyperliquid seems to have avoided vault losses, but it has also suffered a heavy blow.
JELLYJELLY's popularity has come and gone, and it may not attract many users after this incident. Instead, it has caused a lot of disgust among users on social media due to this suspected operation of adding insult to injury. Especially in the Hyperliquid community, many users can be seen condemning Binance's operation.
terrible
