JELLY Delisting Crashes Hyperliquid Price

Hyperliquid (HYPE) is facing heavy selling pressure after a major short squeeze of the JELLY meme coin triggered widespread concerns across the platform.

Major cryptocurrency derivatives exchange Hyperliquid (HYPE) is facing heavy selling pressure following a massive short squeeze on the JELLY meme coin.

According to Benzinga, the exploit led to nearly $12 million in losses for Hyperliquidity Provider (HLP) and forced the exchange to delist the token.

After the exchange’s actions, market confidence took a hit, causing HYPE to drop over 14% in the past 24 hours. At press time, HYPE is trading at $14.64. Its market cap has now fallen below $5 billion.

What Happened?

A whale holding 124.6 million JELLY was exploiting Hyperliquidity Provider (HLP) by manipulating the token’s price.

The whale first dumped the tokens, crashing the price and forcing HLP into a massive passive short. Then, by rebuying and driving the price back up, the whale triggered a loss of nearly $12 million for HLP.

This exploit sparked major concerns around the platform’s risk exposure and security mechanisms.

In response, Hyperliquid announced the delisting of JELLY to prevent what could have become a $230 million loss.

However, the damage to investor confidence was already done, causing HYPE’s price to drop over 10% in the past 24 hours. Its market cap has now fallen below $5 billion as the market reacts to fears of further instability and the potential for similar exploits.

HYPE Price Action

HYPE’s RSI has dropped to 36.27, down sharply from 71 just two days ago. This decline reflects a rapid shift in momentum following the exploit news that sent the price lower after a brief recovery attempt.

RSI (Relative Strength Index) measures price momentum on a scale from 0 to 100. Readings above 70 signal overbought conditions, while values below 30 suggest oversold territory. Levels between 30 and 50 indicate bearish pressure.

With RSI now at 36.27, HYPE is approaching oversold levels, suggesting sellers have taken control. While not extreme yet, it signals weakness and could point to further downside if sentiment doesn’t improve.

Meanwhile, HYPE’s BBTrend dropped from 10 to 6.97 after the exploit but has remained in positive territory for six straight days. BBTrend, or Bollinger Band Trend, measures the strength of price trends based on the expansion of Bollinger Bands.

Values above 3 show strong momentum, while those below 1 suggest sideways action. The drop from 10 to under 7 shows trend strength is weakening, but still intact.

If BBTrend continues to fall, it may confirm a slowdown in bullish momentum. Combined with the low RSI, this could keep HYPE under pressure unless a reversal takes shape.

If the current correction continues, HYPE could soon test the key support at $13.91. This move could be accelerated by the formation of a death cross, which the EMA lines suggest may happen soon.

Losing the $13.91 level would likely add more selling pressure. The next supports are $12.82 and $12.06. A break below those could deepen the downtrend further.

On the flip side, if HYPE can recover from the recent negative sentiment, it may retest the $17.03 resistance. It attempted this level just three days ago but failed to break through.

If $17.03 is broken and momentum builds, HYPE could push higher to $21, and even $25.87. That would mark its first time trading above $24 since February 22.