A source: REKT; Translation: Golden Finance xiaozou

A trader just weaponized Hyperliquid's own liquidation mechanism to backfire the agreement, forcing the agreement to make a choice between the continued blood loss of $12 million and the exposure of its centralized emergency switch.

A small group of validators reached a "quorum number" within two minutes, overturned the market price and forced the token to be removed after JELLY soared 429% within one hour.

Binance and OKX launch perpetual contracts with precise timing, while BitGet CEO pointed out that Hyperliquid is "repeat the mistake of FTX 2.0".

At the same time, ZachXBT questioned why Hyperliquid drew a clear line on market manipulators, but allowed North Korean hackers to use stolen money to get away with it.

When the exchange launches a war through token listing, the voting speed of validators is faster than the time it takes to read the words "decentralization", who is using violence to suppress violence, and who is covering up disastrous risk management?

We first warned about Hyperliquid's fragile security when North Korean hackers tested their defense systems.

To this day, the situation has not improved. The same vulnerability remains shocking despite claims of a 16 validator to expand and promise to strengthen security.

When traders usually try to avoid liquidation, attack planners deliberately create liquidation—turning Hyperliquid's liquidation engine into a ticking time bomb.

What is the goal? JellyJelly(JELLY)—This unpopular token with a market value of 2,000 US dollars is manipulatedExcellent target.

Strategy? Pure genius-style plunder: While establishing huge perpetual short orders of $6 million, it continues to hoard long orders in the cross-chain spot market.

After the position is in place, the second phase is initiated: deliberately pull up the spot prices on each exchange, forcing the system to clear their own short positions.

JELLY soared 429% in one hour, and Hyperliquid's HLP (Liquidity Fund Pool) automatically inherited the toxic short order - as the funding rate soared, the agreement lost millions of dollars per minute.

This is more than just a transaction. This is a well-designed financial guillotine designed to force Hyperliquid to make an impossible choice: either sit and watch the $230 million vault face liquidation as JELLY continues to rise, or tear off the "decentralized" mask to exercise emergency privileges.

This operation exploits four fatal loopholes: the lack of real position restrictions for illicit assets, the weak oracle anti-operation mechanism, the automatic position inheritance system, and the lack of circuit breaker mechanism.

A perfect storm of surgical strikes on systemic weaknesses.

When Hyperliquid's book loss approached $1,200,000 and there was no upper limit, the agreement finally played a trump card: launching emergency validator votes to completely remove the shelvesJELLY.

The lightning consensus reached within two minutes reveals who the real person in power is.

Close the position at the settlement price of $0.0095, while the market price still hovered around $0.5 - the potential eight-digit loss was converted into a profit of $700,000 between keyboard taps. Is there any greater humiliation than this?

Democratic consensus on the speed of centralization.

When the crisis comes, encryption protocols show their essence faster than liquidation.

Google Sheet?

Their countermeasures? Launch the JELLY perpetual contract at the best time to maximize the massacre.

It is pale to describe it as "suspicious timing". As ZachXBT pointed out, two JELLY manipulation addresses (0x20e8 and 0x67f) just obtained fresh funds through Binance on the Arbitrum chain on the eve of the attack.

Is it a coincidence, or a carefully planned market assassination?

The user pointed out that Binance co-founder He Yi allegedly replied "Okay, received" to the request for Hyperliquid.

The subtext is to go online specifically to suppress the newly emerging competitors.

BitGet CEO Gracy Chen bluntly said that "Hyperliquid may be becoming FTX 2.0" and criticized its "immature, immoral, unprofessional" crisis handling. The most transparent friendship in the crypto world is hostile relations.

All these dramatic scenes conceal the exchange war that is taking place in broad daylight.

As Wazz said: "Two exchanges have just publicly bullied another exchange, do you still think this market is not a player confrontation mode?"

For Hyperliquid, it is not a choice between decentralization and centralization—but a loss of $12 million and voiceMake a choice between discouraged people. They chose the latter, and the market knew it well.

ZachXBT gave a fatal final blow: "They draw the line this time will be uneasy, but when North Korean hackers used Radiant to open positions of reasonable scale with Radiant stolen money, they were indifferent."

Selective law enforcement makes the most principled position seem purely out of self-protection.

From SBF's "8 billion USD operational error" to Terra's "40 billion USD algorithm crash", Hyperliquid's emergency privileges and Binance's "timely" listing are just a new chapter in the oldest drama in the crypto circle: a centralized theater dressed in the guise of decentralized marketing.

When every director’s notes for encrypted disasters write about the unprecedented emergency powers"When we can admit that the real emergency is the system itself?

"Verificationists meet and vote" sounds so high-sounding until you get a glimpse of the scenes.

A small group of validators. Two minutes. A result. Zero debate.

This reveals the truth that 81% of the 404 million HYPE tokens pledged by Hyperliquid are safely stored in the foundation node.

is far from the decentralized utopia promised by promotional documents.

The so-called independent validatorValiaDAOPublished the official statement on Twitter:"We voted to remove the shelves at the price point where the manipulation occurredJELLYperpetual contract."

No process description. No defense of 98% price beheading. Only digital responses to the click approval.

Subject to the sharp question of the Hyperliquid by Twitter user Lucas, no one wants to answer: "HL verifiers have secretly added the authority to overturn market prices, or is this emergency switch always blatantly hidden? "

Silence is deafening.

LucasStart directly to the core of the farce: "HLSimply publish existing administrative permissions and removal schedules to clarify allFUD. It is not decent to be vague in this situation. "

After the self-deal destroying the system, Hyperliquid compensates JELLY longs at $0.037,555—more than the actual price unless you are on the blacklist.

They admit that the risk model fails when HLP takes over toxic short orders, and are now strengthening controls: stricter liquidation caps, smarter open position limits, and on-chain voting to remove zombie assets. Typical "We Will Improve" announcements, but is that enough?

As the same protocol that has no position restrictions on illiquid assets and weak oracle protection, it suddenly reveals the ultimate loophole - designed as a governance mechanism that seems to be trustless, but in fact its power is always concentrated in old places.

When your agreement overturns the market, rewrites prices, and removes tokens faster than most people tweets, what you build is not a decentralized exchange - but a centralized dictatorial regime covered in the guise of blockchain.

This Hyperliquid legend is like an encrypted crime novel, all the evil people are innocent.

The first crime: The trader deliberately weaponizes the market and turns the Hyperliquid's own mechanism backfires. Walking in the skyThe perfect exploitation between transaction and naked manipulation.

The second sin: Binance and OKX's "just right" JELLY are on the shelves. There is no more "friendly competition" behavior than launching a perpetual contract for unpopular tokens at precise moments that can cause the greatest harm to competitors. It’s not just watching the fire from the other side of the river—it’s basically selling tickets to hell.

The third crime: Hyperliquid's midnight court, 81% of the pledges were overwritten by a few validators controlled by the foundation, faster than most protocols tweeted.

DeFi"We have to destroy the village and save it again".

HYPE is not just a plunge—when holders realize that they "decentralized perpetual contracts" carry invisible asterisk terms ("reserving the right to modify when they start losing money"), it is simply a face-to-ground crash.

No amount of Discord AMA can rebuild the trust that has been evaporated by the two-minute validator vote.

What the crypto arena witnessed is not innovation—but the CEXs in DeFi cloak stabbed each other with USDT while tweeting about "community governance."

Gladiators who use token listing as weapons and emergency privileges as armor fight.

Hyperliquid users are staring at the screen at the moment and finally understand that their "revolutionary DEX" may be just an optimized version of SBF's high fever dream whisper.

The market price is only the market price when it does not threaten the powerful wallet.

Sarcasm is well known: a protocol that relies on criticizing the rise of centralized exchanges, which just perfectly demonstrates why centralization is still the most stubborn loophole in the crypto field.

The only winner in the end is to avoid the chaos of traders. besidesOur genius strategist who revealed the emperor's new clothes.

They taught the market a lesson at a cost of $12 million: what is the true meaning of "decentralization" when turning profits into losses.

When validators can switch from trustless consensus to price manipulation between two Discord messages, is the greatest innovation of encryption really the technology itself—or is it just a blind belief that we still have endlessly lost after every time we are betrayed?