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Bitget CEO Gracy Chen has sounded a dire warning regarding Hyperliquid’s recent moves, comparing them to the infamous FTX collapse. In a firm statement, Chen condemned the platform for delisting JELLY futures and forcefully closing open positions—actions she feels drastically erode user trust.
A Dangerous Precedent
Hyperliquid’s move to delist JELLY futures and close positions at a predetermined price has shaken the crypto world. In Chen’s view, such moves place users in a serious disadvantage and question the operations integrity of the exchange.
“The decision to close the JELLY market and force payouts at a favorable price sets a dangerous precedent. Trust, not capital, is the foundation of any exchange — and once it’s lost, it’s nearly impossible to recover,” Chen stated.
Echoes of FTX’s Collapse?
The parallels to FTX are inevitable. Similar to the now-notorious exchange, Hyperliquid is an offshore centralized exchange (CEX) where there is little regulatory oversight. The lack of disclosure and rapid liquidation of holdings are reminiscent of some of the red flags that contributed to the collapse of FTX.
What’s Next for Hyperliquid Users?
The main question now is whether Hyperliquid will address these issues or go on with doubtful practices. If users start withdrawing money in large numbers, it may cause a liquidity crisis like the one FTX faced before its downfall.
As the crypto space continues to bounce back from previous missteps, investors and traders need to remain on their toes. This latest scandal is a reminder that in crypto, trust is paramount—and lost, it’s almost impossible to be regained.
What are your thoughts? Is Hyperliquid going down the same road as FTX? Share your thoughts in the comments!
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