Propose an edit: Jelly My Jelly

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Jelly My Jelly (JELLYJELLY) is a memecoin on the [[Solana]] blockchain launched in late January 2025 by Iqram Magdon Ismail, cofounder of the payments app Venmo, with backing from investor Sam Lessin. The token was pitched as the community asset for JellyJelly, an AI video chat application, and became famous twice: once as a celebrity founder launch, and again as the instrument of the March 2025 Hyperliquid short squeeze.

## Origin

The token was minted on the [[pump.fun]] bonding curve on January 29, 2025, presented as a 100 percent fair launch with no presale. Magdon Ismail framed it as an experiment in launching a consumer app with a coin instead of venture funding, part of the same founder nostalgia moment as [[Vine Coin]]. Within days the token surged 1,278 percent, from a market capitalization of about 18 million dollars to roughly 253 million in four hours in early February 2025, before retracing sharply as the celebrity wave cooled.

## The Hyperliquid squeeze

On March 26, 2025 JELLYJELLY became the center of a crisis on the decentralized derivatives exchange Hyperliquid. A trader holding about 124.6 million tokens opened an 8 million dollar short position and then abandoned it, forcing Hyperliquid's liquidity vault to inherit the short, while related wallets bought spot and longed the token. The price spiked 429 percent in about an hour, putting the vault into a floating loss exceeding 10 million dollars, with analysts noting the entire 230 million dollar vault was at risk if the squeeze continued. Binance and OKX listed JELLYJELLY perpetuals mid crisis, adding pressure. Hyperliquid's validators voted to delist the token and force settled positions at 0.0095 dollars, converting the vault's loss into a 703 thousand dollar profit, a resolution widely criticized as centralized intervention.

## Status

The token never recovered its February valuation, trading down about 98 percent from peak with a market capitalization in the single digit millions through the following year. The JellyJelly app continued development separately. In [[the trenches]] the coin is remembered less for its launch than for demonstrating that a thin memecoin could be weaponized against exchange infrastructure.

## References

- https://decrypt.co/303551/venmo-founders-jellyjelly-solana-token
- https://thedefiant.io/news/nfts-and-web3/venmo-co-founder-releases-fair-launch-token-for-new-platform-jellyjelly
- https://www.theblock.co/post/348314/hyperliquid-delists-jellyjelly-memecoin-amid-whale-manipulation-fiasco
- https://www.panewslab.com/en/articles/g0fmo186
- https://info.arkm.com/research/jellyjelly-exploit-on-hyperliquid
- https://beincrypto.com/hyperliquid-jelly-jelly-short-squeeze-binance-liquidations/

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