Hyperliquid optimizes its Risk Management mechanism and compensates JELLY long positions users.

PANews March 28 news, according to the Hyperliquid announcement, due to abnormal trading events in the JELLY market, users holding long positions in JELLY will receive compensation at a price of 0.037555 during settlement. This compensation benefits all JELLY traders except for the marked address. Event review: • A trader executed a self-trade of a JELLY position worth 4 million USDC at a price of 0.0095. • Subsequently, the JELLY price surged over 4 times, triggering a buyback for HLP and liquidating the position, resulting in a loss of value for the HLP account. • Although the 4 million USDC position did not exceed the dynamic open interest (OI) limit, it failed to prevent further positions from being opened after triggering the automatic limit. • The key issue is that after HLP takes over the long positions, it shares collateral with other strategy components without triggering automatic reduction (ADL). Hyperliquid has strengthened risk management, including: • HLP Liquidator Management: Set stricter account value limits, reduce rebalancing frequency, and introduce more complex repurchase liquidation logic. If the Liquidator incurs losses beyond the threshold, it will trigger ADL rather than automatically utilizing collateral from other components. • Dynamic adjustment of OI upper limit: The open interest upper limit will be adjusted dynamically based on market value. • Asset delisting mechanism: Validators will vote on-chain to delist assets that fall below the threshold. Hyperliquid is committed to continuously optimizing the system and enhancing risk prevention capabilities.