Binance Futures has listed USD-margined perpetual contracts for Jelly (JELLYJELLY) amid ongoing concerns surrounding alleged market manipulation linked to HyperLiquid. This raises fresh questions about oversight and transparency within the DeFi derivatives sector.
The listing of Jelly perpetuals by Binance occurs in a tense market environment. Concerns intensified after reports emerged implicating wallets associated with “Hyperliquid attacks” related to suspicious, highly leveraged trades funded via Binance on the Arbitrum network.
Wallets such as 0xb8ebd8ec41 and 0x1072, active across Ethereum, Base, and Mantle networks, suggest potentially coordinated manipulation strategies, per RunnerXBT and ZachXBT.
These alleged market manipulations have notably affected Jelly’s price. Trades by manipulators, including the high-profile whale “Hyperliquid 50x,” reportedly inflated JELLY prices significantly, resulting in nearly $12 million in cumulative losses for liquidity providers such as HyperLiquid’s vault (HLP). Such losses highlight vulnerabilities within decentralized financial mechanisms when faced with targeted exploitations.
Crypto marketer Abhi commented,
“its no secret centralized exchanges have been bleeding perp volume to hyperliquid, but the latest drama around $JELLY may shift narrative.”
Is Binance ‘doing an FTX’ to HyperLiquid?
Binance’s decision to introduce leveraged perpetual contracts amid these allegations has intensified scrutiny. Some analysts question the exchange’s motivations, subtly suggesting the timing could exacerbate volatility rather than stabilize market sentiment.
Given Binance’s historical influence in FTX’s downfall, this listing raises reflective considerations about the strategic impacts of major exchanges on smaller, competing DeFi entities.
HyperLiquid’s vaults previously suffered losses exceeding $4 million due to exploits leveraging highly aggressive trading strategies. These repeated incidents have amplified the crypto community’s demand for stricter regulatory frameworks and increased vigilance from centralized platforms facilitating derivative contracts.
The integration of Jelly perpetual contracts at a time when manipulative practices are widely used spotlights ongoing tension between innovation in financial instruments and requisite transparency.
According to Binance’s official announcements, the introduction of JELLYJELLYUSDT and related MAVIAUSDT perpetual contracts is standard practice aimed at broadening traders’ investment opportunities.
Yet, amid current controversies, such moves inevitably lead to speculation regarding strategic intentions. This is especially pertinent given allegations from investigative crypto analysts suggesting Binance’s potential indirect involvement, highlighted by ZachXBT, who linked specific wallets conducting manipulative trades directly to Binance deposits.
Users have cited Binance Co-Founder Yi He replying “Ok, received/got it” to a request to list Jelly in order to take down HyperLiquid as potential evidence that the Jelly listing is part of a strategy to eliminate a competitor.
HyperLiquid has since decided to delist Jelly, stating,
“After evidence of suspicious market activity, the validator set convened and voted to delist JELLY perps. […]
Note that HLP’s 24 hour pnl as of writing is approximately 700k USDC. Technical improvements will be made, and the network will grow stronger as a result of lessons learned. More details will be shared shortly.”
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