VOXEL Token Jumps 200% as Bitget Glitch Fuels $12.7 Billion Trading Frenzy

Monicah W

Voxies (VOXEL), a little-known gaming token, surged by over 200% within 24 hours on April 20 following a suspected malfunction in Bitget’s trading system.

The unexpected glitch led to an explosive spike in activity, pushing the VOXEL/USDT contract’s trading volume to an eye-watering $12.7 billion. According to Coingecko data, this significantly outpaces Bitcoin’s $4.76 billion volume on the same platform.

Bitget Trading Error Reportedly Lets Users Earn Six-Figure Profits

The unprecedented spike drew attention across the crypto space, particularly given that VOXEL is a relatively obscure free-to-play blockchain game token with a market cap under $30 million.

According to on-chain analyst Dylan, the Bitget bot repeatedly executed trades within the narrow $0.125 to $0.138 price range. Savvy traders quickly caught on, using just $100 to scalp profits exceeding six figures.

Reports suggest that the glitch allowed some users to walk away with tens or even hundreds of thousands of USDT in a matter of hours.

In response, Bitget’s spokesperson Xie Jiayin confirmed the platform was aware of the irregular activity and has launched an internal investigation. The company also noted that affected accounts may face temporary restrictions, urging users to contact in-app support for further assistance.

“Every platform, at every stage of development, may encounter challenges and uncertainties, yet these are an inevitable part of the journey. Bitget will provide the event details and resolution within 24 hours,” Jiayin added.

Meanwhile, the incident has sparked criticism from market experts and traders, many of whom question Bitget’s internal safeguards and technical maturity.

Several community members have criticized Bitget’s response to the issue. Some have claimed that the exchange’s decision to forcibly settle VOXEL contracts at discounted rates breached user trust. Bitget’s hybrid custody model is also receiving backlash following the incident.

“The platform’s product design reveals concerning flaws: a hybrid custody risk pool exposes users to systemic risks, and unrestricted position sizes open the door to manipulation. If these issues are not addressed, more altcoins could be weaponized against Bitget—potentially making it the next catastrophic failure in the crypto space,” one analyst stated.

Meanwhile, the timing of the incident is also notable. VOXEL is currently listed on Binance’s “Vote to Delist” program. The campaign aims to improve transparency and give the community a voice in token listings.

Overall, the Bitget incident has amplified concerns about potential market manipulation involving the token and highlighted the broader risks tied to centralized exchanges.

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Sui Meme Coins are Becoming Popular As DEX Volume Surges in April

Sui meme coins, not typically seen at the forefront of the sector, are surging in volume recently. Their market cap is far smaller than Solana meme coins, but it’s also growing fast.

LOFI, a meme coin deployed on the blockchain, surged by over 186% in a week. If fresh DEX trading volumes start flowing into these assets, Sui could be the next emerging ecosystem for meme coins.

Are Sui Meme Coins About to Explode?

Meme coins based on Solana have been getting a lot of attention lately, with surging trade volumes and token prices. This has fueled speculation that Solana’s poised to lead a new meme coin boom, especially as the sector is exposed to new risks.

However, Sui meme coins are gaining some unexpected traction, and DEX volumes are noticeably soaring.

Sui DEX Volume In the Past Month. Source: DefilLama

Sui is a high-performance Layer-1 blockchain that shares many similarities with Solana but several key differences.

Its design focuses on scalability, using parallel transaction processing and an object-centric transaction model to achieve this aim. Sui’s ecosystem is much less mature than Solana’s, but this could present opportunities for meme coins.

Sui’s developers are constantly working on upgrades to encourage new projects, some of which are explicitly geared towards meme coins. Solana’s 6.3 billion meme coin market cap grew by 2.4% in the previous 24 hours, while Sui’s increased by 4.6%.

LOFI grew 184.5% in the last week, highlighting its dedicated community.

LOFI’s impressive rise stands out, but several other projects on the layer-1 network have also attracted speculative interest. Meme coins thrive on community hype, and the blockchain’s DEX volumes are soaring.

If this high performance and committed enthusiasm connect with fresh investors, it could present an explosive opportunity.

For now, Sui’s meme coin ecosystem has a ways to go, with a total market cap of $123 million. However, this sector moves fast, and the Sui ecosystem could be poised to make some major growth soon, if meme coin enthusiasts continue to trade.

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Hyperliquid Delists JELLY JELLY Meme Coin To Avoid $230 Million in Losses

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.

jelly jelly price chart
JELLY JELLY Meme Coin Price Chart. Source: TradingView

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 Users Urging Officials to List JELLY JELLY and Trigger Losses for Hyperliquid. Source: X (formerly Twitter)

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.

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

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