ChainCatcher message, @ai_9684xtpa published a recap of the Hyperliquid vault being attacked again:A whale on Hyperliquid using 50x leverage previously "actively liquidated 160,000 ETH long positions" and withdrew a profit of $1.857 million;More cunning target selection: At that time, the whale on Hyperliquid chose ETH as the target, while this time the attacker targeted the Memecoin $Jellyjelly, which has a depth gap of N times, making price manipulation much easier;Setting bait with an airdrop: Address 0xde9...f5c91 opened a $4.08 million short position on $JELLY on Hyperliquid, with an opening price of $0.0095 and a margin of 3.5 million USDC;Replaying the active liquidation: Another address Hc8gN...WRcwq, after opening the short position, collaborated to dump the spot price, lowering the coin price, which created floating profit space for the short position, while the opening address withdrew 2.76 million USDC in margin, repeating the trick led to the position being liquidated and taken over by the vault;Turning around to buy and empty the vault: Two waves of intensive buying starting at 21:01 and 21:45 further amplified the vault's floating losses until the amount became significant and caught the market's attention.As long as jellyjelly does not drop, retail investors in HLP will withdraw funds, and the more funds withdrawn, the lower the liquidation price will be, which can be understood as "the early runners profit at the expense of the late runners." Subsequently, HLP may experience a bank run, and eventually, it may not even require jellyjelly to pull much from the vault before being forcibly liquidated due to insufficient margin.However, currently, HLP's TVL has decreased by about $20 million, and the liquidation price for the short position has dropped to around $0.14. The last buying operation from the address manipulating the coin price was 1 hour ago, and this address currently holds 124 million jellyjelly (worth $4.86 million), making it the top holding address on-chain. This address currently has no more funds available for buying, which is also the main reason for the significant price fluctuations that followed. As one of the main competitors of Hyperliquid, if Binance releases related positive news, such as listing jellyjelly spot or others, it will directly kill the competition.

ChainCatcher news, according to Lookonchain monitoring, a whale holding 126 million JELLY (jellyjelly) is manipulating the coin price.The address first sold JELLY, causing a price crash, which allowed HLP to have a passive short position of 398 million JELLY (approximately 15.3 million USD).Then the address bought back JELLY, driving up the price, resulting in HLP losing nearly 12 million USD.

ChainCatcher message, Bounce Brand responded on the X platform regarding the recent market attention on price fluctuations:"It is important to clarify that the team has not engaged in any form of price manipulation. According to the team's monitoring, over the past few weeks, an unknown entity has accumulated more than 20% of the total supply of AUCTION through continuous on-chain transfers. These on-chain transfer activities and their resulting price impacts have attracted widespread market attention. We have observed that this move has created a significant chain reaction in the market: the spot trading volume of AUCTION on Binance has exceeded $200 million, and the futures market has surged to become the third-largest trading pair, only behind BTC and ETH. On Upbit, the spot trading volume has reached an astonishing level of $500 million, temporarily surpassing the trading scale of Bitcoin.At the same time, we have noticed some unhealthy liquidity conditions in the market: as the primary price discovery market, Binance's hot wallet holdings of AUCTION have fallen below 10% of the total supply. The annualized interest rate in the lending market has climbed above 80%, and the funding rate has consistently maintained an abnormal level of -2%. In response, several exchanges have implemented risk control measures, such as adjusting perpetual contract position limits.To maintain market stability, our team has taken proactive actions: on one hand, we are actively providing liquidity support on multiple exchanges, and on the other hand, we have voluntarily locked up approximately 1.5 million AUCTION tokens from the project’s inventory and team allocation."

ChainCatcher news, Economic Daily published an article titled "Strict Measures to Root Out Market Manipulation," which points out that departments such as market regulation, communication management, financial supervision, and public security need to strengthen data connectivity and sharing, enhance governance in key areas, and ensure smooth coordination between punishment and enforcement.At the same time, it is essential to make good use of internet technologies such as big data, cloud computing, and blockchain to accurately identify the capital chains and information flows involved in stock price manipulation, strengthen the supervision of the entire trading process, "pull out the radish and bring out the mud," discover and investigate each case, and deter the whole area, allowing those who dare to break the law to reveal their true colors, learn a lesson, and remember the consequences.

ChainCatcher news, since the implementation of the South Korean "Virtual Asset User Protection Act" six months ago, the Financial Services Commission (FSS) of South Korea is now expanding its investigation into price manipulation to individual investors.Recently, an investor was suspected of price manipulation by the FSS due to frequent short-term trading on a major exchange and is undergoing a related investigation. Although these trades were merely part of day trading activities, due to their suspicious nature, the FSS has requested that the investor prove there was no intent to manipulate the market.With the recent rise in cryptocurrency prices, the FSS is closely analyzing trading patterns and volumes to detect any potential signs of price manipulation.

ChainCatcher news, according to Bloomberg, video game developer FractureLabs has filed a lawsuit against the well-known cryptocurrency market maker Jump Trading in the federal court in Chicago, accusing it of fraud and deception by manipulating the price of the DIO token.It is reported that FractureLabs originally planned to launch the DIO token on the Huobi exchange (now renamed HTX) in 2021 to raise funds. The company hired Jump Trading as the market maker for DIO and lent 10 million tokens to its subsidiary, while sending 6 million tokens to HTX for sale.The lawsuit claims that Jump Trading systematically liquidated DIO positions, causing the token price to drop to about 0.5 cents, creating millions of dollars in profits for itself. Subsequently, Jump repurchased about $53,000 worth of tokens at a significant discount and returned them to FractureLabs, after which it terminated the market maker agreement.

ChainCatcher news, South Korean lawmaker Min Byoung-dug plans to criticize AVAIL as the second "Hamburger Coin" that raises questions during the parliamentary audit. Note: Hamburger Coin is a virtual asset issued overseas and traded domestically in South Korea, while the local one is Kimchi Coin.The lawmaker has requested data on abnormal trading of AVAIL on Bithumb and is investigating its sudden surge upon listing, potential price manipulation, and the effectiveness of customer protection measures at the exchange.The Financial Supervisory Service, which is investigating this incident, declined to comment and stated: "Mentioning specific tokens or the progress of the investigation may affect market prices, so the principle is that the case is handled and disclosed thoroughly."

ChainCatcher news, according to Beosin Alert monitoring, Paraluni has lost approximately $336,000 due to a price manipulation attack. Previously, it was reported that the metaverse project Paraluni was subjected to a price manipulation attack, where the attacker amplified the value of the collateral through price manipulation, allowing them to borrow more funds, resulting in losses for the project. Users need to withdraw their collateral as soon as possible.

ChainCatcher news, the Web3 security platform Ancilia posted on X platform that the metaverse project Paraluni suffered from a price manipulation attack. The attackers used price manipulation to amplify the value of the collateral, allowing them to borrow more funds, resulting in losses for the project. Users need to withdraw their collateral as soon as possible.

ChainCatcher news, according to Edaily, the Financial Supervisory Service of South Korea is seeking to establish a new organization dedicated to the supervision, inspection, and investigation of virtual assets. The newly formed investigation team will have the authority to investigate "market manipulation" of virtual assets. In addition to inspecting virtual asset operators, starting from July next year, there will also be a serious investigation into improper trading behaviors such as market manipulation and the use of undisclosed information. The scale of the newly established department is expected to be determined next month after the government finalizes the budget management guidelines for public enterprises and quasi-government organizations.

ChainCatcher news, according to Cointelegraph, documents submitted to the U.S. District Court for the Southern District of New York on September 13 show that former Chief Revenue Officer of the crypto lending company Celsius, Roni Cohen-Pavon, pleaded guilty to four criminal charges of conspiracy to commit price manipulation, securities fraud, manipulation of securities prices, and wire fraud. He has posted a $40 million bail and is released until the sentencing hearing on December 11.The plea is part of an agreement with prosecutors that requires Cohen-Pavon to compensate parties affected by the collapse of Celsius. It is alleged that former CEO Alex Mashinsky profited approximately $42 million from the sale of CEL tokens by artificially inflating prices, while Cohen-Pavon earned about $3.6 million.

ChainCatcher news, the Financial Intelligence Unit of South Korea held a meeting on "Enhancing the Authenticity of Suspicious Transaction Reports (STR) with Relevant Institutions." The six financial associations present introduced the current support status and improvement plans for enhancing the STR capabilities of their member companies across various industries. They unanimously agreed on the need to strengthen the support system at the industry level and to take stringent measures against the recent rapid increase in improper trading activities, including virtual asset crimes and price manipulation.

ChainCatcher news, according to a tweet from the founder of Slow Mist, Yu Xian, two months ago, Slow Mist detected the risk of price manipulation attacks on the decentralized stablecoin yield protocol Zunami Protocol and privately informed the team in advance, but "unfortunately, it was an unpleasant communication."This morning, Zunami Protocol tweeted that zStables is suspected to have been attacked, but the collateral remains safe, and the team is currently conducting an in-depth investigation. According to Web3 cybersecurity company Ancilia's monitoring, the hackers stole over $2 million in this attack and are currently transferring the funds to Tornado Cash. The root cause of this attack is price manipulation, where the hackers used a flash loan to update the reserve number in the SDT SushiSwap address, which was then used to determine the asset price in the UZD contract.

ChainCatcher news, the blockchain security audit company Beosin's Beosin EagleEye security risk monitoring, early warning, and blocking platform has detected price manipulation attacks on axlUSD/WETH in LeetSwap on the BASE chain, resulting in a loss of approximately $620,000.According to Beosin's analysis, the main reason for the attack is: the attacker primarily exploited the _transferFeesSupportingTaxTokens function in the pair contract, which allows anyone to use the function to transfer axlUSD in the pair contract, leading to an increase in the token price, allowing the attacker to sell the tokens for profit.

ChainCatcher news, according to Bloomberg, cryptocurrency market maker Wintermute has been accused in a proposed class action lawsuit of helping former Celsius Network CEO Alex Mashinsky deceive investors of the now-bankrupt crypto lending company. Wintermute engaged in wash trading and spoofing activities to inflate the price and trading volume of Celsius's token CEL.It is reported that the class allegations are unrelated to Celsius's bankruptcy. Wintermute denied all wrongdoing in a statement to Bloomberg. (Bloomberg)

ChainCatcher news, according to Yonhap News Agency, the Supreme Prosecutors' Office of South Korea has identified five major types of crimes related to virtual assets that the prosecution needs to focus on in the future during a prosecutors' meeting. These include investment fraud using virtual currency and NFT development as bait, speculation in real estate, multi-level scams related to virtual currency targeting the elderly, dissemination of false business plans related to cryptocurrency, and manipulation of virtual asset balances and prices. (Source link)

According to Chain Catcher news and reported by JTBC, the South Korean prosecution has arrested an employee with the surname Yu from Terraform, who is a key assistant to Do Kwon and is accused of engaging in false trading and price manipulation.Chain Catcher previously reported that the South Korean prosecution issued arrest warrants for Terra founder Do Kwon and four others, and requested the Ministry of Foreign Affairs to revoke the passports of Do Kwon and others. Interpol has issued a red notice for Do Kwon. (JTBC)