Hyperliquid Controversy Deepens: ZachXBT Points Finger at Binance Wallets

• Arthur Hayes calls HYPE a “David vs. Goliath” in response to recent controversies
• Hyperliquid faces backlash after delisting JELLY token following manipulation allegations
• Blockchain investigator ZachXBT points to Binance-linked wallets to the scheme

BitMEX co-founder Arthur Hayes threw his weight behind Hyperliquid’s HYPE token, framing its struggle as a “David vs. Goliath” battle. 

Referencing potential rivals, Hayes commented on social media, “…humans like than to support an underdog vs. a perceived unstoppable opponent. $HYPE for the win!” – associating his support with Hyperliquid’s native token.

What Sparked the Hyperliquid Controversy?

Hyperliquid’s problems began after alleged whale manipulation of the JELLY token price reportedly led to a short squeeze. This event resulted in potential losses nearing $10 million for the exchange’s liquidity providers (LPs), according to reports. 

And then, what has now become controversial, Hyperliquid’s validator team voted to delist JELLY perpetual contracts and forcibly settle open positions at a predetermined price. 

Despite the significant potential LP losses from the manipulated trades, th…

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