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Yesterday, Hyperliquid — the onchain perps DEX standard-bearer — faced an arguably existential stress test.

A trader opened an $8 million short on JELLYJELLY, a low-cap memecoin, then pumped its onchain price, triggering a liquidation cascade that dumped the position onto Hyperliquid’s communal risk vault, HLP. As JELLYJELLY soared, the vault bled: At peak, onchain watchers tracked over $10 million in unrealized losses.

Then, Hyperliquid made its move. Validators delisted the market and forcibly settled all JELLYJELLY perp positions at $0.0095 — the entry price of the attacker’s…

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