Perpetual swap DEX Hyperliquid suffered a whale attack and was on the brink of losing $15 million. It promptly responded in a way that generated a fair amount of controversy.

The founder and CEO of Ambient Finance Doug Colkitt joined the show to explain:

How perp swaps work
How a whale used the low-liquidity memecoin $JELLY to attack Hyperliquid’s vault
How Hyperliquid’s response broke DeFi taboos around decentralization, oracles, etc.
Criticisms of and justifications for the team’s decisions
What can be done to prevent similar attacks in the future