Binance Futures has recently listed USD-margined perpetual contracts for Jelly (JELLYJELLY), a move that comes amidst concerns surrounding alleged market manipulation linked to HyperLiquid. The market environment has been tense, with reports emerging about wallets associated with “Hyperliquid attacks” conducting suspicious, highly leveraged trades funded via Binance on the Arbitrum network. These alleged manipulations have significantly affected Jelly’s price, with manipulators reportedly inflating prices and causing nearly $12 million in cumulative losses for liquidity providers, including HyperLiquid’s vault (HLP).
Crypto marketer Abhi commented on the situation, stating that centralized exchanges have been losing trading volume to HyperLiquid, but the recent drama surrounding JELLY may shift the narrative. Binance’s decision to introduce leveraged perpetual contracts amid these allegations has raised questions about the exchange’s motivations. Some analysts believe that the timing of the listing could exacerbate volatility rather than stabilize market sentiment. This move has also led to reflections on the strategic impacts of major exchanges on smaller, competing DeFi entities, particularly in light of Binance’s historical influence in FTX’s downfall.
HyperLiquid’s vaults have previously suffered losses exceeding $4 million due to exploits involving highly aggressive trading strategies. As a result, there is a growing demand within the crypto community 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 widespread highlights the ongoing tension between innovation in financial instruments and the need for transparency in the market.
The introduction of JELLYJELLYUSDT and related MAVIAUSDT perpetual contracts is seen by Binance as a way to broaden traders’ investment opportunities, according to the exchange’s official announcements. However, given the current controversies surrounding manipulation allegations, such moves inevitably raise speculation about the exchange’s strategic intentions. This is further fueled by allegations from investigative crypto analysts suggesting Binance’s potential indirect involvement in the manipulation, with specific wallets linked to Binance deposits.
There have been claims that Binance Co-Founder Yi He may have played a role in the decision to list Jelly as a way to take down HyperLiquid, with users pointing to a message in which He allegedly replied “Ok, received/got it” to a request to list Jelly. In response to the suspicious market activity, HyperLiquid has decided to delist Jelly perpetual contracts, citing evidence of manipulation and stating that technical improvements will be made to strengthen the network. The situation serves as a reminder of the challenges faced in the crypto market, where innovation in financial instruments must go hand in hand with transparency and regulatory oversight to ensure market integrity and investor protection.
