Is Hyperliquid the next FTX? JELLY drama triggers Bitget CEO warning

Bitget’s CEO, Gracy Chen, warned today about potential risks at crypto trading platform Hyperliquid following controversial handling of the JELLY token incident.

#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 platform faced turmoil after a trader opened and deliberately self-liquidated a $6 million short position on JellyJelly, forcing Hyperliquid to absorb substantial losses.

The token’s market cap surged from approximately $10 million to over $50 million in under an hour due to the forced squeeze.

The CEO criticized Hyperliquid’s operational structure, stating:

“Despite presenting itself as an innovative decentralized exchange with a bold vision, Hyperliquid operates more like an offshore CEX with no KYC/AML, enabling illicit flows and bad actors.”

The Bitget CEO highlighted structural concerns about Hyperliquid’s platform, including “mixed vaults that expose users to systemic risk, and unrestricted position sizes that open the door to manipulation.”

Binance announced plans to list JELLY perpetual futures amid the controversy, which some users interpreted as a move to target Hyperliquid’s position.

BREAKING 🚨

Binance will offer perps listing for $JELLY

They’ve declared war against Hyperliquid pic.twitter.com/zjJKGxHD6f

— Abhi (@0xAbhiP) March 26, 2025

The token has risen 62% in the past 24 hours, while Hyperliquid’s HYPE token has fallen 14.4%, according to CoinGecko data.