Jelly-My-Jelly (JELLY JELLY) has spiked by over 100% over the last hour but the surge in value is triggering a wave of anxiety for Hyperliquid Vault. The automated market maker is in the middle of a short squeeze and could lose a fortune if the Solana memecoin continues to surge.
Solana Memecoin Threatens Hyperliquid Vault’s Holdings
According to a post by Wu Blockchain, Hyperliquid Vault is facing the possibility of a grim liquidation of its position. The decentralized exchange is in the middle of a short squeeze of JELLY JELLY after taking up the short position from a trader who voluntarily liquidated his position.
At the moment, Hyperliquid Vault is grappling with an unrealized loss of over $9 billion since betting against the Solana memecoin. Hyperliquid will lose over $230 million to the Solana memecoin short squeeze should prices spike to over 1 cent.
“If jellyjelly reaches $0.15374, Hyperliquid Vauld will lose its entire $230 million in funds,” said Wu Blockchain.
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The post How Hyperliquid Vault Risks Losing $230M Following This Solana Meme Coin’s Surge appeared first on CoinGape.
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