Perpetual swap DEX Hyperliquid suffered a whale attack and was on the brink of losing $15 million. It promptly responded in a way that generated a fair amount of controversy.The founder and CEO of Ambient Finance Doug Colkitt joined the show to explain:<ul>
<li>How perp swaps work</li>
<li>How a whale used the low-liquidity memecoin $JELLY to attack Hyperliquid’s vault</li>
<li>How Hyperliquid’s response broke DeFi taboos around decentralization, oracles, etc.</li>
<li>Criticisms of and justifications for the team’s decisions</li>
<li>What can be done to prevent similar attacks in the future</li>
</ul>Visit our website for breaking news, analysis, op-eds, articles to learn about crypto, and much more: unchainedcrypto.com<h3>Thank you to our sponsors!</h3><ul>
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</ul><h3>Guest</h3><ul><li>
<a href="https://x.com/0xdoug">Doug Colkitt</a>, Founder and CEO of Ambient Finance</li></ul><h3>Links</h3><ul>
<li> Accounts of the $JELLY whale attack on Hyperliquid and its response </li>
<li class="ql-indent-1">X: <a href="https://x.com/0xAbhiP/status/1904937963936768067">The story</a>
</li>
<li class="ql-indent-1">X: <a href="https://x.com/threesigmaxyz/status/1904910637945270744?s=46">Nuking the vault</a>
</li>
<li class="ql-indent-1">X: <a href="https://x.com/HyperliquidX/status/1904923137684496784?ref_src=twsrc%5Egoogle%7Ctwcamp%5Eserp%7Ctwgr%5Etweet">How Hyperliquid responded</a>
</li>
</ul><ul>
<li>Arguments for and against Hyperliquid’s solution:</li>
<li class="ql-indent-1">ZachXBT: <a href="https://x.com/zachxbt/status/1904920202560647635">ZachXBT calls out alleged hypocrisy</a>
</li>
<li class="ql-indent-1">Jordi Alexander: <a href="https://x.com/gametheorizing/status/1904932217174020257">Shorting on a perp is not robust</a>
</li>
<li class="ql-indent-1">Jose Maria Macedo: <a href="https://x.com/ZeMariaMacedo/status/1904919788998005074">How do they override the oracle price?</a> </li>
<li class="ql-indent-1">Doug: <a href="https://x.com/0xdoug/status/1904927417522593913">Closing positions at an arbitrary price</a>
</li>
<li class="ql-indent-1">Gracy Chen: <a href="https://x.com/GracyBitget/status/1904941729834557453">Casting doubts on integrity</a>
</li>
<li class="ql-indent-1">Steven.hl: <a href="https://x.com/stevenyuntcap/status/1904929362056745053#m">In defense of HL</a>
</li>
<li class="ql-indent-1">Kam: <a href="https://x.com/KamBenbrik/status/1904936449780199527">Of course quorum was reached easily</a>
</li>
</ul><ul>
<li>What precedent Hyperliquid’s actions set</li>
<li class="ql-indent-1">Kevin Zhou: <a href="https://x.com/Galois_Capital/status/1904942458666094932">Binance and OKX set a precedent</a>
</li>
</ul>Timestamps:👋 0:00 Intro🤔 02:59 What is Hyperliquid?🐳 05:16 How a whale used $JELLY to attack⛔ 09:19 How Hyperliquid responded📈 11:59 Why did Binance and OKX suddenly list the memecoin?🤔 16:32 How did Hyperliquid ‘change the rules’ to protect themselves?⚖️ 19:25 ‘Losses for thee, but not for me’: Hyperliquid’s hypocrisy?💡 24:39 Doug’s ‘cleaner’ solution👀 28:35 Will this have positive or negative knock-on effects?🧹 31:20 Tidying up illiquid markets📰 32:46 Crypto News Recap Learn more about your ad choices. Visit <a href="https://megaphone.fm/adchoices">megaphone.fm/adchoices</a>

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Hyperliquid Saved Itself a $15 Million Loss, but Sparked Criticism - Ep. 807

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