Hyperliquid’s 20% Rally May Be Short-lived Unless Bitcoin Saves It

In a convoluted and dramatic scandal, HyperLiquid was rocked today by a massive JELLY short squeeze. It was forced to assume one trader’s liabilities, leaving it on the hook for $230 million.

As this situation developed, major CEXs like Binance and OKX listed JELLY perpetuals in what looks like a direct attack. HyperLiquid delisted the token, sparking extreme controversy.

What Happened with JELLY JELLY and Hyperliquid?

HyperLiquid, a popular DEX, is facing massive scrutiny after an interesting short squeeze. JELLY JELLY, a newly launched Solana meme coin, is at the center of the debacle.

Essentially, massive JELLY whales managed to manipulate the meme coin price, causing losses in HyperLiquid’s HLP vault.

“A massive whale with 124.6 million JELLYJELLY ($4.85 million) is manipulating its price to make Hyperliquidity Provider (HLP) face a loss of $12 million. He first dumped the token, crashing the price and leaving HLP with a passive short position of $15.3 million. Then he bought it back, driving the price up—causing HLP to suffer a loss of nearly $12 million,” LookonChain claimed via social media.

So, essentially, JELLY JELLY initially surged nearly 500% today. This dramatic jump was sparked by what’s called a “short squeeze.” It occurs when someone bets heavily that a coin’s price will fall (known as “shorting”), but instead, the price unexpectedly rises.

In this case, a trader borrowed a massive amount of JELLY tokens and sold them immediately. He expected the price to drop, buy the tokens back cheaper, and keep the difference as profit.

Unfortunately for the trader, the price didn’t fall—it skyrocketed, forcing them to buy back the coins at much higher prices, creating massive losses.

This sudden forced buying pushed the price even higher, catching the attention of traders and investors who jumped in to ride the wave. In under an hour, JELLY’s market cap rapidly increased from $10 million to $43 million.

This frenzy also left Hyperliquid, the exchange involved, holding a big loss of $6.5 million from the trader’s failed short position, sparking speculation about potential financial stress on the platform.

Meanwhile, Binance and OKX listed JELLY perpetuals, further driving its price up. So the potential loss became even larger for Hyperliquid. Some users even urged Binance and other competitors to list the token and deal a ‘death blow’ to Hyperliquid.

Binance is Apparently Trying to Liquidate HyperLiquid

In a very interesting twist, it looks like these competitors are heeding the call. Binance, the world’s largest crypto exchange, was hit with a wave of requests to list JELLY JELLY, thereby causing big losses for HyperLiquid.

Yi He, one of its co-founders, said she would consider a listing, and crypto sleuth ZachXBT claimed that the original whale was funded via Binance.

Shortly after these developments happened, Binance announced that it would begin offering perpetuals contracts for JELLY.

OKX also jumped on the bandwagon with perpetuals trading of its own. After this, HyperLiquid announced that it would delist JELLY JELLY, seemingly erasing its unrealized losses.

“After evidence of suspicious market activity, the validator set convened and voted to delist JELLY perps. All users apart from flagged addresses will be made whole from the Hyper Foundation. This will be done automatically in the coming days based on onchain data. There is no need to open a ticket. Methodology will be shared in detail in a later announcement,” HyperLiquid’s statement claimed.

This radical action immediately caused an explosion on social media. HyperLiquid’s supporters expressed unease over the JELLY JELLY incident, while its detractors accused the firm of criminal activity.

The firm’s validators confirmed that they unanimously took the decision, partially rebutting rumors that its CEO acted alone.

Still, there are no mincing words here. If HyperLiquid can simply declare its JELLY JELLY liabilities null and void, that’s a highly destabilizing act.

Commentators pointed out that this liquidation takeover mechanic is one of the main triggers that destroyed FTX.

#Hyperliquid may be on track to become #FTX 2.0.

The way it handled the $JELLY incident was immature, unethical, and unprofessional, triggering user losses and casting serious doubts over its integrity. Despite presenting itself as an innovative decentralized exchange with a…

— Gracy Chen @Bitget (@GracyBitget) March 26, 2025

The community will have to watch carefully to see how the situation develops, but this is very alarming.

The post Hyperliquid Delists JELLY JELLY Meme Coin To Avoid $230 Million in Losses appeared first on BeInCrypto.

In June, Bitcoin’s hashrate suddenly plunged to its lowest level in over a year. The decline came amid heightened political tensions between the US and Iran, prompting speculation about a potential geopolitical connection.

However, experts remain divided. What are the arguments on both sides of the debate? Here’s a deeper look.

Bitcoin Hashrate Plunges After ATH – Is Iran the Culprit?

Hashrate, a key metric measuring the computational power securing the Bitcoin network, indicates the scale and health of mining activity.

A high hashrate means more miners participate, making the network more secure. When the figure drops, it typically suggests that many miners have paused operations for some reason.

According to CryptoQuant, the 7-day average Bitcoin hashrate dropped to 800 EH/s — its lowest level since March 2025.

This sharp decline occurred between June 14 and 24, coinciding with rising military tensions involving Israel, the US, and Iran.

Nic, founder of CoinBureau, proposed a provocative theory. He suggested Iran may have converted oil into Bitcoin to bypass sanctions and fund state spending.

In a post on X, Nic estimated that about 3.1% of the global Bitcoin hashrate could be coming from Iran.

He argued that the drop in hashrate following US airstrikes might not be coincidental. Bitcoin mining facilities operated by Iran’s Islamic Revolutionary Guard Corps (IRGC) could have been targeted.

This theory is supported by blockchain analytics firm Elliptic, which has reported that Iran uses Bitcoin mining as a financial tool to withstand international sanctions.

Mike Alfred, another analyst, went further. He claimed that Iran is not only evading sanctions with Bitcoin, but also selling BTC obtained through cyberattacks to buy missiles and upgrade its uranium enrichment infrastructure.

“We might have entered an era where countries are bombing each other’s Bitcoin mining facilities as part of the global hash war I predicted in 2017,” Max Keiser told BeInCrypto.

Could the US Be the Real Cause?

Rob Warren, author of The Bitcoin Miner’s Almanac, offered a different view. He suggested the drop may be rooted in domestic conditions in the US, not geopolitical conflict.

Instead of blaming airstrikes in Iran, Warren pointed to extreme heat in the US as a more likely factor.

“It’s impossible to know at any given moment how many miners are operating. Block time is the only proxy we have for existent hashrate. My guess is curtailment due to the US heat dome, combined with many other unknowns. I don’t think Iran is a single cause,” Warren said.

Tech investor Daniel Batten agreed and applied Occam’s Razor — the idea that the simplest explanation is usually correct.

He noted that record-high temperatures in Texas drove up electricity demand on the ERCOT power grid, forcing miners to scale down operations to prevent overload.

Data from the US Energy Information Administration (EIA) shows electricity usage in Texas has surged, partly due to the growth of data centers and mining facilities. Natural gas-powered electricity generation is projected to increase by 8% in 2025.

The crypto community watches closely for definitive answers as geopolitical instability and climate-related disruptions rise. Regardless of the cause, this hashrate drop will likely have long-term implications for Bitcoin’s price and mining strategies.

The post Experts Debate Why Bitcoin Hashrate Plummeted in June appeared first on BeInCrypto.

Altcoin season may be taking shape in a new and less predictable way in 2025. While the market recently saw a brief altcoin rally, analysts believe these mini-cycles will continue to appear before a broader, more sustained shift occurs.

Bitcoin dominance has dropped sharply, and altcoins have started to outperform BTC in the short term, but broader indicators suggest this rotation is still selective. Unlike past cycles, the next altcoin season could be more fragmented, favoring projects with strong fundamentals and execution rather than lifting the entire market.

Bitcoin Dominance Drops to March Lows as Altcoins Gain Ground

Bitcoin dominance has dropped sharply over the past six days, falling from 65.39% to 62.5%—a decline of nearly 5 basis points and its lowest level since March 31.

This shift suggests that capital is beginning to flow away from Bitcoin and into altcoins, weakening BTC’s share of the total crypto market cap.

Bitcoin dominance tracks the percentage of the overall crypto market made up by Bitcoin. A falling dominance level often signals the start of an altcoin season, where smaller-cap tokens outperform Bitcoin.

A notable example occurred in late 2024, when dominance dropped from 61.1% to 55% between November 21 and December 7, sparking a broad altcoin rally. If this trend continues, altcoins could see renewed momentum in the days ahead.

According to Marcin Kazmierczak, Co-founder & COO of RedStone:

“The recent mini altseason reflects growing investor interest in altcoins, driven by or possibly resulting from falling BTC dominance. It’s possible we’ll see sustained rallies, especially as the market matures and more projects gain traction.
However, I expect that, unlike past cycles, the market will continue the trend of not all altcoins benefiting equally — projects with strong products and excellent go-to-market strategies will likely outperform, while others may struggle to maintain momentum.” – Kazmierczak told BeInCrypto.

Top Altcoins Outpace Bitcoin This Week, But YTD Gap Remains Wide

Year-to-date, Bitcoin (BTC) continues to dominate most of the altcoin market, outperforming 11 of the top 12 altcoins. The only exception is XRP, which has posted a 23% gain this year, slightly edging out Bitcoin.

This performance gap is one reason the broader market has remained in a Bitcoin-led phase, with capital largely consolidating around BTC rather than spreading evenly across the altcoin space.

However, the trend has shifted sharply in the past seven days. Despite BTC rising 7% during this period, it was outperformed by all of the top 12 altcoins—most notably by Ethereum (ETH), which jumped 43%, and Dogecoin (DOGE), which surged 36%.

This short-term reversal may indicate the early stages of a potential altcoin season. According to Aurelie Barthere, Principal Research Analyst at Nansen, Solana looks bullish:

“We like SOL for strong fundamentals plus stabilizing 50-day moving average vs BTC.” – Barthere told BeInCrypto.

If altcoins continue to sustain this momentum and outperform BTC more consistently, it could signal a broader market rotation away from Bitcoin dominance and into the altcoin sector.

Altcoin Market Cap Rises, But Index Signals BTC Still Leads

The total market cap of altcoins has surged over the past week, rising from $1.07 trillion to $1.30 trillion—a significant increase signaling strong inflows into the altcoin sector.

Despite this growth, the CoinMarketCap Altcoin Season Index has declined from 35 to 31 in the same period, showing that most altcoins are still underperforming relative to Bitcoin.

This disconnect suggests that while money is flowing into altcoins, it’s not yet broad or strong enough across the top 100 assets to trigger a true altcoin season.

The CMC Altcoin Season Index measures whether the market is favoring altcoins over Bitcoin by analyzing the performance of the top 100 altcoins.

If at least 75% of them outperform Bitcoin, it’s considered Altcoin Season; if 25% or fewer do, it’s Bitcoin Season. The index ranges from 1 to 100 and updates daily.

With the current value sitting at 31, the market remains in a Bitcoin-dominated phase, despite the rising altcoin market cap—highlighting that only a limited number of altcoins are driving the gains.

The post Analysts Discuss Mini Altcoins Seasons Before a Larger Cycle – Here’s Why appeared first on BeInCrypto.