After a trade incident with Jelly that resulted in a loss of $ 10.63 million, Hyperliquid introduced additional security measures.
The problem was the result of a rogue trader who himself played a large Jelly position, which caused a price peak, which deposited a liquidation process that led to the market formation of hyperliquid (hype) who absorbed the loss. In March 27 on X on X, the platform sketched various steps it took to improve its risk management.
Stricter limits for the Liquidator Vault, who serves as an emergency fund to cover losses of failed transactions, is one of the most important updates. By reducing the cap, Hyperliquid hopes to prevent the vault from assuming unnecessary risks that can jeopardize the overall stability of the platform.
Rebalancing from Kluis is also lowered. In the past, the risk was more difficult to predict because frequent re -balancing led to sudden changes in exposure. Delaying this process should create a more stable risk management system.
Another important improvement is how liquidation safe triggers work. In the past, if the liquidator took Vault a loss, the automatic money would get from other safes. If losses now reach a certain level, the automatic liquidation starts. Instead of distributing risks to other safes, this update helps to comprehend them.
Hyperliquid also improves its open interest caps, which determine the maximum amount that traders can bet on a single active. Now these caps will adapt dynamically to market conditions, which reduces the chance that the system will be disturbed by competitive price fluctuations.
In addition, validators can decide when they should remove risky assets via a new voting system. To prevent further problems, a token can be removed if it falls under the safety thresholds. Hyperliquid continues to experience difficulties despite these updates.
According to Defi Lama factsThe total value that has been locked in its liquidity safe has fallen from a peak of $ 540 million in February to $ 180 million from March 28. USDC outflows, which only surpassed for hours after the hack $ 340 million facts.
Hype is also struggling to recover. The Token acted for around $ 16 before the incident. It has now fallen to $ 13.98, such as at the time of the press, a 3% decrease compared to the last 24 hours and 59.83% below the peak of $ 34.96. Moreover, there has been a significant decrease in hype trading activity, with the volume in the last day fell by 79.8% to $ 94.3 million.
