What happened to hyperliquid exchange today? Why is everyone talking about it? What they did?

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Hyperliquid faced a market manipulation incident today involving the JELLY token. A group of traders manipulated JELLY’s price, triggering a short squeeze that put the exchange’s liquidity providers at risk of losing over $10 million.

In response, Hyperliquid’s validator team voted to delist JELLY perpetual contracts to protect market integrity. The exchange announced that affected users, except those involved in the manipulation, will be refunded automatically in the coming days.

Now they are being criticized for how they handled the situation, calling it immature, unethical, and unprofessional, even comparing it to FTX’s collapse. The event has raised concerns about Hyperliquid’s risk management and whether it has too much control despite being a decentralized exchange.