Remember when Hyperliquid got exploited a few times over the past two months? People said the Hype token would crash to $5 or lower. By “exploited,” I don’t mean hackers drained funds. It was more complicated. I’ll explain that part later.
Two months later, Hype remains one of the strongest tokens out there. This comes during the “Trump tariffs war,” where stocks and bonds have traded strangely.
Altcoins look shaky overall, while Bitcoin is holding up surprisingly well. Is Hype ready for an ATH?
Hyperliquid Exploited For Millions – Faces Backlash From Community as They “Roll back the price”
Let’s first explain what Hyperliquid is. It’s a decentralized exchange running on its own blockchain. Some think it’s a Layer 3 on Arbitrum (an Ethereum Layer 2). That’s not the case.
Hyperliquid only uses Arbitrum to bridge USDC to its own chain. From there, users can trade on the DEX with leverage or spot markets. Hype is their native token. They raised no capital before launch, meaning VCs had to buy in after it went live.
This led to a massive price rally, from around $3 to $35, pushing its market cap to $35 billion.
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One trader VS. Hyperliquid’s HLP vault.
$4M gone. No bug. No exploit. Just a brutal game of liquidity mechanics.
Here’s how they pulled it off. 🧵👇 pic.twitter.com/ivkMBcwS2q
— Three Sigma (@threesigmaxyz) March 12, 2025
To understand how this trader exploited Hyperliquid, you must know how Hype and Hyperliquid work. The post on X mentioned above explains it well, and while Hyperliquid themselves say they weren’t exploited, this trader pulled the same stunt a few times more.
The most well-known incident involved a low-market-cap Solana token called JELLYJELLY. A trader gradually accumulated over 15% of the token’s total supply, which caused the price to rise significantly.
Now, Hype had no cap on maximum position size – only a minimum margin requirement to open a position. That allowed the trader to build an oversized short position, nearly $6 million against a $20 million market cap.
NEW 🚨
Massive drama going down on Hyperliquid involving $JELLY 👇
1.A trader opened a massive $6M short position on JellyJelly (a small coin, ~$20M mcap at the time).
2.This trader deliberately self-liquidated by pumping JellyJelly’s price on-chain. Essentially forcing… pic.twitter.com/AI01q7KnZR
— Abhi (@0xAbhiP) March 26, 2025
Here’s where the exploit happened: the trader intentionally triggered a liquidation by withdrawing as much margin from his account as Hyperliquid allowed, while simultaneously pushing the token’s price up on the spot market.
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On Hyperliquid, when a trader gets liquidated, the Hype vault takes over the position. This usually works well for majors like Bitcoin or Ethereum, since liquidations often happen near local bottoms and end up profitable for the vault.
However, in this case, once other traders caught on, they pushed the token price up 300%, leaving Hyperliquid with a massive loss.
So, how did the exchange respond? They delisted JELLYJELLY while still holding the short, then rolled the price back to a more favorable level. This move let them avoid losses, but it triggered major backlash. Is Hyperliquid really decentralized if they can reverse trades like this?
The truth lies somewhere in between. The rollback happened after their validators voted unanimously in favor of the decision.
This exploit was clearly intended to discredit Hyperliquid, and despite the criticisms, it appears that it didn’t work as hoped.
One Month Later HYPE Crypto Is The Strongest Altcoin
The drama has settled, and Hype has made key improvements in handling liquidations and margin requirements. They also lowered maximum leverage and will now delist illiquid or low market cap tokens more quickly.
In theory, these changes sound solid. And so far, we’ve seen no new exploits since the updates. It’s fair to call this progress. Baby steps toward building a decentralized product that can rival giants like Binance, Bybit, and OKX.
Meanwhile, broader crypto markets have struggled due to macroeconomic pressure. But Hype has stayed strong. The token is up nearly 100% from its bottom and just made its first higher high.
The chart looks bullish. A breakout above $19.5 could signal a full reversal and possibly a new all-time high above $35.
One thing’s clear – if the macro picture stabilizes and Bitcoin starts pushing new highs, Hype could be one of the strongest altcoins to watch.
BTC Bull Gains Traction as Bitcoin Holds Strong During Market Uncertainty
Hyperliquid has surprised many. After multiple exploits and community backlash, its native token Hype is up nearly 100% from the bottom. The platform pushed new updates, rolled out stricter risk controls, and regained trust. In a shaky altcoin market, that kind of strength stands out.
However, while Hyperliquid leads among altcoins, Bitcoin still holds its ground quietly. After dipping to around $74,500 earlier this month, BTC has recovered steadily and now trades above $84,000. This week, that’s a 4% gain, even with global markets facing pressure from tariff concerns and mixed economic signals.
The Crypto Fear & Greed Index is still in “Fear” at 33, but that’s a slight improvement. Investor interest is returning, and many see Bitcoin as a safer place to park capital when altcoins look unstable. With geopolitical tensions rising and altcoin valuations down over 40% since December, Bitcoin’s relative strength is becoming more important.
BTC Bull is one project taking full advantage of this trend. The project has already raised $4.8 million in its presale by offering investors a way to benefit directly from Bitcoin’s success.
BTC Bull’s idea is simple. If Bitcoin reaches new highs—$150K, $200K, or $250K—holders get rewarded. These rewards include distributions in BTC itself and the project’s native token. The more Bitcoin rises, the more rewards flow back to the early adopters.
The token also includes a staking system and deflationary mechanics like regular token burns. These features add long-term value while limiting the circulating supply. On the security side, the project has been audited by Coinsult and SolidProof, adding an extra layer of trust.
While many altcoins continue struggling, BTC Bull positions itself as a high-upside bet riding Bitcoin’s momentum. It doesn’t fight against the market—it aligns with Bitcoin’s cycle.
If Bitcoin keeps stabilizing or even starts climbing, BTC Bull could benefit directly. In this presale phase, $BTCBULL is priced at $o.00247.
As investors look for safer exposure with real reward potential, BTC Bull might be one of the smartest ways to back Bitcoin during uncertain times.
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Key Takeaways
- Hype Surges 100% despite recent exploits, proving strong resilience in a shaky altcoin market.
- Protocol Improvements include stricter liquidation rules, lower leverage, and faster delisting of low-cap tokens.
- Breakout Imminent: A move above $19.5 could push Hype toward a full reversal and retest of its $35 high.
- BTC Bull Rises with Bitcoin: As BTC holds above $84K, BTC Bull gains traction with milestone-based rewards and a $4.8M presale.
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