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250M Surge in Hyperliquid’S Vault Defies Fallout From JELLY Market Meltdown
Hyperliquid defied the odds by growing its market making vault by $250 million in just two months, despite facing a major crisis that would have sunk most platforms. The platform’s internal market maker vault, which provides depositors with yield, showed remarkable resilience following March’s JELLY market disaster.
The JELLY incident was no ordinary market hiccup. A user manipulated the index price, causing the vault to plunge $13.5 million underwater. Hyperliquid had to forcibly close the JELLY market and settle at $0.0095 to stop the bleeding. The fallout was swift and brutal. Total value released plummeted from $510 million to $150 million as traders fled. The platform’s HYPE token crashed 20% as confidence evaporated.
Most platforms would have struggled to recover from such a blow. Yet Hyperliquid pulled off something impressive. High-profile traders began returning to the platform, drawn by its ability to handle massive positions without significant slippage. The vault’s annual interest rate of 13.42% certainly didn’t hurt either. That’s better than what most restaking protocols offer these days. This yield significantly outperforms restaking protocols which typically offer around 9.1%. Unlike traditional yield farming strategies that require active management across multiple protocols, Hyperliquid’s vault offers passive returns through its automated market-making system.
The numbers tell a compelling story. HYPE has surged 72% over the past 30 days, currently trading at $36.34 with a market cap of $12.14 billion. The token recently broke above its descending trendline and the $35.80 resistance level. Some analysts are even predicting a $50 price target for June. Not bad for a platform that faced extinction just months ago. The vault’s growth from $163 million to $418 million occurred despite ongoing concerns about JELLY market centralization.
Looking ahead, Hyperliquid faces both opportunities and challenges. June 2025’s massive token releases will put over $3.3 billion into the market, potentially creating volatility. However, growing institutional interest suggests the platform has weathered its worst storm. The vault’s continued growth despite the JELLY fiasco proves that crypto traders value performance over perfection.
Hyperliquid’s recovery demonstrates an important lesson in crypto markets. Platforms that can handle crisis, adapt quickly, and maintain attractive yields tend to survive. While the JELLY incident exposed vulnerabilities in the platform’s design, the subsequent growth suggests investors are willing to forgive past mistakes if the returns are worth it. Sometimes, surviving a crisis makes you stronger.
