Hyperliquid gets exploited. GameStop to purchase Bitcoin

👋 Hey fam!

🤔 Once again, the crypto market is caught in a new wave of uncertainty despite some small growth over the past seven days. Let’s find out what happened in the crypto space in this week’s digest by GoodCrypto! 👇

quick weekly news

Hyperliquid gets exploited by a whale

On March 26th, news emerged in the crypto space about the latest Hyperliquid exploit, which involved taking advantage of the exchange’s ability to open leveraged positions of any size. Here’s a breakdown of what exactly happened:

• The trader first opened two accounts with long positions of $2.15M and $1.9M, along with a $4.1M short position to neutralize exposure from the longs.
• When $JELLY reached the liquidation price of the short position, the exchange was unable to close it swiftly and was forced to use the Hyperliquidity Provider Vault (HLP) to cover the loss.
• At the same time, the attacker began withdrawing collateral from the long-position accounts as $JELLY surged over 400% due to the short liquidation. This maneuver resulted in a seven-figure profit.
• The exploit was possible due to the lack of position size limits on Hyperliquid, as well as the exchange’s inability to immediately liquidate positions. As a result, Hyperliquid suffered a $12M loss.
• The trader successfully withdrew $6.26M from Hyperliquid, but the exchange suspended withdrawals for the remaining $1M. In response, the trader started selling $JELLY from one of their accounts.
• Eventually, Hyperliquid delisted $JELLY at a price of $0.0095, effectively neutralizing the profits made from the exploit.

As a result, the trader is now at an estimated ~$900K loss, as they are unable to withdraw their remaining funds from the exchange.

While the company managed to regain control of the situation, some users have raised concerns about whether the decision was truly aligned with most node validators on the exchange, calling Hyperliquid’s decentralization into question.

GameStop to purchase Bitcoin

GameStop is an American retailer of video games, consumer electronics, and gaming merchandise, recently known for its impressive stock market surges driven by WallStreetBets traders. On March 26th, the company announced plans to invest in Bitcoin, using part of its $4.8B in cash reserves.

However, before disclosing the details of the Bitcoin purchase, GameStop released a press statement hours later clarifying its strategy. According to the announcement, the company plans to acquire Bitcoin through senior convertible notes with 0% interest, valued at over $1.3B. Additionally, the GameStop community will have the option to purchase an extra $200B worth of these notes within two weeks of the initial issuance.

Notably, senior convertible notes are not a new method for acquiring Bitcoin. MicroStrategy, now rebranded as Strategy, has already accumulated over 500,000 BTC, worth more than $44B, using a similar approach.

Crypto Rules Top Paul Atkins’ SEC Agenda Ahead of Committee Hearing

On Thursday, Donald Trump’s pick for the SEC, Paul Atkins, held a nomination hearing before the Senate Committee on Banking, Housing, and Urban Affairs. In his speech, he took aim at what he called the “ambiguous and non-existent” digital asset regulations that he believes are hindering market growth.

“Since 2017, as I have led industry efforts to develop best practices for the digital asset industry, I have seen how unclear regulation creates uncertainty and inhibits innovation. A top priority of my chairmanship will be to work with my fellow Commissioners and Congress to provide a firm regulatory foundation for digital assets through a rational, coherent, and principled approach,” he stated.

Paul Atkins is a seasoned policymaker, having previously served under past SEC leadership. He is a strong advocate for crypto and a vocal opponent of tight regulatory policies, not just in the crypto space but in broader financial regulation as well.

However, concerns are mounting over his potential conflicts of interest in the industry. As detailed in a 34-page letter from Senator Elizabeth Warren (D-MA), Atkins previously served as an advisor to the failed crypto exchange FTX and currently holds up to $5M in a crypto investment fund, along with $1M in equity across two crypto firms.

Bitcoin price prediction markets bet BTC won’t go higher than $138K in 2025

According to recent Polymarket poll data, the crypto community remains skeptical about whether the Bitcoin rally will continue at the same pace as in November-December 2024. While most still expect Bitcoin to reach new highs near $138K, a large group of users anticipate $BTC dropping to $70K or even $50K in 2025.

Source: Ashwin

The data was initially sourced from Polymarket, but the actual poll calculations were analyzed by crypto analyst Ashwin on X. According to the chart, there is a nearly equal split between those who believe Bitcoin will hit $70K or $110K by the end of 2025. There is also a possibility of $BTC reaching $120K or even $130K, though Ashwin also notes a 33% chance that Bitcoin could drop to $50K this year.

Although these projections are neutral to slightly bullish, they may not be as optimistic as many crypto believers had hoped.

“The $138K Bitcoin price target may not seem bullish to most Bitcoiners, who are accustomed to hearing hyperbolic valuations. However, the market remains conservative as it recovers from the Trump tariff uncertainty,” he said.

Still, the current poll results and probabilities may shift as market uncertainties, particularly those tied to Donald Trump’s policies, continue to evolve.

“I expect sentiment and price predictions to grow more bullish as tailwinds emerge this year:

• The world adjusts to a new geopolitical reality.

• Global liquidity increases.

• The Fed is likely to cut rates by summer.

• More companies and institutions seek to buy Bitcoin.

• Bitcoin- and crypto-friendly legislation advances,” he added.

the best time to day trade crypto by GoodCrypto

In cryptocurrency day trading, choosing the right time to trade can significantly impact your profitability. Although the market operates 24/7, certain hours offer better liquidity, lower costs, and more favorable trading conditions.

Optimal Trading Hours
The best time to day trade any crypto asset is when the markets are the most active during overlapping trading sessions, particularly European (08:00-17:00 GMT) and American (13:00-22:00 GMT) hours. During this period, liquidity, volatility, and trading volume are at their highest, resulting in:

🔸 Tighter spreads for lower trading costs;
🔸 Higher liquidity for smoother order execution;
🔸 Increased volatility for better trading opportunities;

Want to know the time to avoid trading for maximizing portfolio growth? 📈 Dive into our full guide on the best time to day trade by GoodCrypto! 👇

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