A crypto whale who allegedly manipulated the prize of the Jelly my Jelly (JELLY) memecoin on decentralized exchange Hyperliquid still holds nearly $2 million worth of the token, according to blockchain analysts.

When the price of JELLY rose by 400%, the $4 million short position wasn’t immediately liquidated due to its size. Instead, it was absorbed into the Hyperliquidity Provider Vault (HLP), which is designed to liquidate large positions.

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The exploit occurred only two weeks after a Wolf of Wall Street-inspired memecoin — launched by the

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Lessons from the JELLY memecoin meltdown: “Hype without fundamentals”

“The JELLY incident is a clear reminder that hype without fundamentals doesn’t last,” according to Alvin Kan, chief operating officer at Bitget Wallet.

“In DeFi, momentum can drive short-term attention, but it doesn’t build sustainable platforms,” Kan told Cointelegraph, adding:

“Projects built on speculation, not utility, will continue to get exposed — especially in a market where capital moves quickly and unforgivingly.”

While Hyperliquid’s response cushioned short-term damage, it raises further questions about decentralization, as similar interventions “blur the line between decentralized ethos and centralized control.”

The Hyper Foundation, Hyperliquid’s ecosystem nonprofit, will “automatically” reimburse most affected users for losses related to the incident, except the addresses belonging to the exploiter.

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