Learn about jelly-my-jelly (JELLYJELLY), the Solana memecoin that has recently taken the cryptosphere by storm because it was the token used in a trader’s attempt to liquidate Hyperliquid’s token vault. This article explains the background of the jelly-my-jelly project from its inception earlier in 2025 and how it became the main instrument of one of the biggest crypto trading controversies so far this year.
The jelly-my-jelly (JELLYJELLY) Token, created by Venmo co-founder Iqram Magdon-Ismail, was launched on the Solana blockchain back in January 2025 through the memecoin launch service pumpdotfun. The project bridges social media with decentralized finance and provides exclusive access to the Jelly video-sharing platform. While its token already experienced its share of ups-and-downs in its brief two month long history, JELLYJELLY experienced peak volatility recently on March 26, 2025 when a whale trader executed a price manipulation scheme targeting perpetuals DEX Hyperliquid. The debacle resulted in Hyperliquid delisting JELLYJELLY from its platform in order to avoid loss, inciting questions about just how decentralized the purported DEX really is.
What is Jelly-My-Jelly (JELLYJELLY)?
Jelly-my-jelly (JELLYJELLY) is a meme-inspired cryptocurrency built on the Solana blockchain, created by Venmo co-founder Iqram Magdon-Ismail and early investor Sam Lessin. Launched through Solana’s Pump.fun platform, the token is designed to offer early access to the Jelly video-sharing app, now available on the Apple App Store. The app enables users to capture and share video call moments, featuring AI-powered tools for automatic captions and titles. Rather than using a traditional website or white paper, the JELLY team is leveraging social media to build buzz around the coin. In the spirit of Web3 irreverence, the team intentionally posts cryptic messages to spark curiosity and discussion, which in turn drives online discussion and fuels the token’s trading activity.
How Does JELLY Work?
As a meme token built on the Solana blockchain, JELLY aims to take a fresh approach to socially-driven crypto engagement. The project is centered around several key principles:
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Innovation in SocialFi: The application aims to merge blockchain technology with engaging, interactive social experiences.
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Community-Led Growth: Jelly promotes user involvement and collective value creation, and its website currently offers waitlist spots to those wanting to try the app.
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Inclusivity and Playfulness: By integrating video clip communication with blockchain innovation, JELLY hopes to make crypto more approachable while celebrating meme culture.
By blending the essence of digital social interaction with DeFi and social media integration, jelly-my-jelly wants to foster a growing app by building a collaborative community of both Web2 and Web3 natives.
What is the Recent JELLY Crypto Drama on Hyperliquid about?
On-chain data shows that a trader holding $4.85 million worth of JELLY tokens strategically combined a short position on HyperLiquid with spot purchases of the token on-chain. This maneuver triggered a liquidation on HyperLiquid, effectively passing the short position over to HLP, Hyperliquid’s automated market-making bot integrated with the exchange’s liquidation system.
Following this, the trader aggressively bought JELLY on spot markets, driving the price higher and temporarily pushing HLP’s unrealized losses to $13.5 million. Due to the limited liquidity on decentralized exchanges, influencing the token’s price was significantly easier than on HyperLiquid. Other exchanges like Binance and OKX also joined the fray by listing JELLY perpetuals on their respective platforms, piling on further bullish tailwinds to token price.
In an apparent effort to limit losses, HyperLiquid force-closed its JELLY market and delisted JELLY from its platform in order to avoid eating the massive loss. This decision was seemingly made by the small handful of Hyperliquid validators, which led to questions about how decentralized the platform really was if a small group of validators could unilaterally decide to void its JELLY liabilities. On the other hand, many in the crypto community see the event as a coordinated attack on Hyperliquid because many large CEXs decided to list JELLY right when HLP was facing a short squeeze.
How to Buy JELLYJELLY?
You can trade JELLYJELLY through Phemex MemeX, which listed the token back at the end of January 2025. MemeX represents a cutting-edge feature that lets users trade on-chain assets directly from their Phemex account, eliminating the need for complex cross-chain wallet transfers. It serves as a hub for a wide range of popular and trending token projects.
Step 1: Navigate to MemeX
Launch the Phemex App and tap the "Market" or "Spots" icon in the bottom navigation menu. Find and select the "MemeX" tab from the top navigation bar.
Step 2: Agree to the Disclaimer (For First-Time Users)
If you're visiting MemeX Center for the first time, a disclaimer will appear. Read the terms and conditions thoroughly to understand the risks and responsibilities involved, then click “Confirm”.
Step 3: Choose the JELLYJELLY Token
Inside the MemeX Center, you can scroll through the available meme coins or search by name or contract address. Select the coin you're interested in, which would be JELLYJELLY in this case, to see detailed information like its price chart, trading volume, market cap, and more.
Step 4: Buy or Sell JELLYJELLY
Make sure your spot wallet has at least 1 USDT, as assets on MemeX can only be purchased using USDT. Enter the amount you wish to trade, double-check the transaction details, and then click "Buy" or "Sell" to complete your order. To learn more, check out our guide on how to use Phemex MemeX.
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