Hyperliquid optimizes risk management mechanism and will compensate JELLY multi-users

PANews reported on March 28 that according to Hyperliquid's announcement, due to abnormal trading events in the JELLY market, users holding JELLY long positions will be compensated at a price of 0.037555 at the time of settlement. Except for the labeled address, this compensation is beneficial to all JELLY traders. Event Review:

• A trader traded a JELLY position worth US$4 million at a price of 0.0095.

• The price of JELLY then rose by more than 4 times, and HLP triggered a repurchase and liquidated the position, resulting in damage to the value of the HLP account.

• Although the 4 million USDC position did not exceed the dynamic open interest (OI) limit, it failed to prevent further opening of positions after triggering the automatic upper limit.

• The key problem is that after HLP takes over the position, it shares collateral with other strategic components, and does not trigger automatic position reduction (ADL).

Hyperliquid has strengthened risk management, including:

• HLP Liquidator Management: Sets stricter account value caps, reduces rebalancing frequency, and introduces more complex repo clearing logic. If the loss exceeds the threshold, the Liquidator will trigger ADL instead of automatically using other components collateral.

• Dynamic adjustment of OI ceiling: The open interest ceiling will be dynamically adjusted according to market capitalization.

• Asset removal mechanism: Verifiers will remove assets below the threshold through on-chain voting.

Hyperliquid promises to continue to optimize the system and improve risk prevention capabilities.