Hyperliquid Delists JELLYJELLY After $12M Whale Attack

Hyperliquid Delists JELLYJELLY After $12M Whale Attack

Hyperliquid delisted perpetual futures for Solana meme coin JELLYJELLY on Wednesday after a whale-led manipulation triggered massive unrealized losses. A wallet shorted the token while another dumped it on DEXs, crashing the price and forcing the protocol’s HLP vault to absorb the position.

Moments later, a separate wallet went long on JELLYJELLY, escalating the vault's losses to roughly $12 million, according to Lookonchain. "All users apart from flagged addresses will be made whole from the Hyper Foundation," Hyperliquid said, adding it will implement technical fixes.

Within the hour, Binance and OKX listed JELLYJELLY perps, amplifying volatility just as Hyperliquid froze the contract. Users speculated rival exchanges were exploiting the event to destabilize Hyperliquid’s community-owned vault, intensifying a potential DEXs vs CEXs war.

Hyperliquid’s token plunged 22% before recovering slightly, while JELLYJELLY’s creators distanced themselves from the chaos. “I highly approve of this insane crypto war playing out between degens, whales, and crypto trading platforms,” wrote Venmo investor Sam Lessin.

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Ethereum Runs Final Pectra Testnet on Hoodi

Ethereum developers launched the final test of the Pectra upgrade on the newly created Hoodi testnet after earlier failures on Holesky and Sepolia. The Pectra upgrade includes changes to user experience and smart wallet capabilities such as paying fees in tokens other than ETH. Devs plan to activate Pectra on Ethereum’s mainnet roughly 30 days from Wednesday if the Hoodi test proceeds without major issues.

The simulation pushed key code changes through Hoodi to test finalization, aiming to prevent bugs before mainnet deployment. Ethereum testnets are low-stakes environments that mimic the main chain, and Hoodi was created specifically for one last dress rehearsal. The update adds account abstraction support, allowing wallets to automate and simplify interactions for developers and end-users alike.

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GameStop to Buy Bitcoin, Stock Surges 16%

GameStop announced plans to purchase Bitcoin and stablecoins using a portion of its $4.8 billion in cash, sparking a 16% stock surge on March 26. CEO Ryan Cohen had previously hinted at a Bitcoin allocation, with support from ETF partner Strive Asset Management. Although the company didn’t reveal timing or amounts, speculation on social media suggests a substantial buy may be forthcoming.

Bitcoin advocate Anthony Pompliano believes the company’s effort to amend its investment policy hints at a major allocation, not a symbolic move. According to him, board approval for crypto would not be pursued for a mere 1-2% allocation. A poll from Michael Saylor even suggested GameStop would need to hold $3 billion in BTC to “earn respect” from Bitcoiners.

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Crypto Influencer BitBoy Arrested Over Emails to Judge

Crypto influencer Ben Armstrong, known online as “BitBoy,” was arrested in Florida on March 25 following a warrant related to emails he sent to Georgia Superior Court Judge Kimberly Childs. The Volusia County Division of Corrections listed him as a fugitive from justice taken into custody at 7:18 p.m. local time. Armstrong had announced the warrant days earlier on social media while representing himself legally.

This is Armstrong’s second arrest following a September 2023 livestream outside a former associate’s home over a Lamborghini dispute. He’s also been involved in a class-action lawsuit related to promoting Binance, which he settled for $340,000 with NBA star Jimmy Butler. After being cut from Hit Network in 2023 for alleged misconduct, Armstrong has remained a controversial figure in the crypto world.

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Data of the Day

Bitcoin miners generated $3.7 billion in revenue during Q4 2024 and are on track for a similar $3.6 billion in Q1 2025, according to a Coin Metrics report released March 26. The rebound follows the April 2024 halving event that cut block rewards in half to 3.125 BTC, squeezing miner margins. Despite the pressure, miners have adapted by investing in energy-efficient ASICs and migrating to lower-cost regions.

Coin Metrics noted that network hashrate hit an all-time high in January, driven by operational upgrades and diversification strategies. Some miners, like Core Scientific, are repurposing infrastructure to support AI workloads for added revenue. While fee revenue is still modest, increasing high-value transaction activity may help sustain miner incentives as block rewards decline further over time.

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More Breaking News

• Raydium will launch its PumpFun competitor "LaunchLab", within a week to offer customizable token launches on Solana after PumpFun ended its integration with Raydium.
• Ripple will drop its cross-appeal in the SEC case and receive a $75 million refund from an earlier judgment, potentially closing the years-long legal battle.
• Fidelity is preparing to launch its own stablecoin as part of a broader strategy to tokenize money market funds and offer digital cash on blockchain rails.
• Polymarket acknowledged alleged manipulation in a market about a US-Ukraine deal, where UMA token holders influenced the outcome despite no actual agreement.
• Bitso will launch MXNB, a Mexican peso-pegged stablecoin on Arbitrum, managed by its new subsidiary Juno and aimed at boosting cross-border trade in Latin America.
• The SEC has dropped its investigation into Immutable and its IMX token with no enforcement action, a move hailed by the firm as a win for Web3 gaming.
• Google Play has blocked 17 unregistered crypto exchanges in South Korea after regulators flagged them for operating without proper authorization under local laws.
• BlackRock has launched a new Bitcoin ETP in Europe through iShares, with Coinbase as custodian, as crypto ETFs grow in popularity across global markets.

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