Hyperliquid vault faces $240M liquidation risk amid JELLYJELLY short squeeze

On-chain analyst @ai_9684xtpa reported on X that Hyperliquid’s vault is facing over $10 million in unrealized losses from a $5 million short on JELLYJELLY. If the token hits $0.17, the vault could be fully liquidated, risking its $240 million capital. JELLYJELLY has surged 230% in the past hour, likely due to a coordinated short squeeze.