Chinese law enforcement agencies have successfully dismantled three cryptocurrency money laundering operations utilizing the Hyperliquid platform since March. The schemes exploited Hyperliquid's high-leverage liquidation mechanism to generate losses on the platform while simultaneously establishing reverse positions on centralized exchanges to profit, effectively laundering illicit funds. This method closely mirrors the trading strategy of a Hyperliquid user known as @JamesWynnReal, according to Mirror Tang, founder of Odaily News.