Hyperliquid News Today: JELLYJELLY's Surge Defies Crypto Crash, Triggers Manipulation Debate

JELLYJELLY, a Solana-based meme coin, has surged to a $500 million market cap amid a broader cryptocurrency market downturn, sparking scrutiny over potential market manipulation. The token reached an all-time high of $0.50 on November 4, defying a slump that saw Bitcoin dip below $100,000 and Ethereum fall to $3,000—its lowest since July, according to a a Yahoo Finance report. Despite a subsequent correction to $0.25, JELLYJELLY remains up 31.7% in the past 24 hours, with daily trading volume surging 96% to $462 million, according to a BeInCrypto analysis.

Blockchain analytics firm Bubblemaps raised alarms about coordinated trading activity, noting that seven previously inactive wallets withdrew 20% of JELLYJELLY's supply from exchanges like Gate.io and Bitget over four days. The sudden liquidity drain, followed by a 600% price spike, suggests "manipulative tactics aimed at inflating momentum," the firm stated, as reported by the Yahoo Finance piece. This follows a March 2025 incident on decentralized exchange HyperLiquid, where a whale orchestrated a short squeeze threatening $230 million in losses, prompting the platform to delist JELLYJELLY and tighten risk controls, as detailed by BeInCrypto.

The token's volatility has attracted leveraged trading platforms. Aster recently launched a JELLYJELLY contract with up to 5x leverage, while HyperLiquid offers BTC at 40x, ETH at 25x, and SOL at 20x, according to a Coinotag article. Such products amplify exposure but also heighten risks during sharp corrections. Meanwhile, HyperLiquid's native token (HYPE) has fallen for seven consecutive days, trading below $38 amid broader risk-off sentiment, according to an FXStreet report.

JELLYJELLY's surge reflects broader trends in meme coin speculation, driven by social media hype and low barriers to entry. However, critics argue the token's utility remains unclear, with its value largely dependent on retail trading frenzy. "This isn't about fundamentals—it's about liquidity control and coordinated buying," said one analyst, echoing Bubblemaps' concerns reported by Yahoo Finance.

The episode underscores growing regulatory and market scrutiny of meme coins, particularly after the U.S. Securities and Exchange Commission's recent enforcement actions against exchanges. While JELLYJELLY's short-term gains have drawn institutional attention—Upexi increased its Solana holdings by 4.4% in October—investors are cautioned against overreliance on speculative assets during volatile market cycles, as reported by BeInCrypto.