Exploring the Jelly Short-Squeeze Incident: Are Centralized Exchanges Really Superior to Hyperliquid? The article discusses the recent Jelly short-squeeze incident involving Hyperliquid, which has sparked industry debate. The @godrealmx team interviewed Shawn, a developer in the Hyperliquid ecosystem's LSD project. Shawn introduced his background and Hyperliquid's technical architecture, including its blockchain network for DEXs, HyperEVM (Layer2), and staking mechanism. He noted that Hyperliquid's code is currently closed-source, raising concerns, and its ecosystem tools have room for optimization. Regarding the Jelly incident, Shawn pointed out that it exposed weaknesses in Hyperliquid's risk management for high-risk projects, such as the permissionless listing process and passive market-maker pool mechanism. He suggested that Hyperliquid should implement measures like restricting positions based on market cap and dynamically adjusting Open Interest Caps. Read more wublock.substack.com/p/explori…
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