====Basic Contract Science Popularization==== The crisis of Hyperliquid this time, HLP's funding guarantee can only be considered as half of a problem, and the real problem has not been raised by anyone Let me explain to everyone: If someone wants to buy, someone must place a sell order in order to complete the transaction The core business model of an exchange is to combine the orders of buyers and sellers and earn transaction fees If all the funds are empty, who will open more? Usually market makers, if they feel that the coin cannot rise temporarily, they are not willing to open more and send money to the counterparty to make a profit, right? When the HLP model first came out, Hyperliquid told everyone that this was a "market making" fund, and retail investors, due to their lack of understanding of the term "market making", did not understand the risks behind it at all Let's give an example: When the single direction opening of some small currencies is one-sided, such as all empty orders 📉， At this point, basically all CEX will limit the issuance of empty orders for these small currencies HLP， Just use everyone's money to act as a counterparty. Although this coin is only going to fall and not rise, there's nothing we can do. HLP, in order to "make markets," will foolishly open long orders 📈， Forcefully losing everyone's money From the perspective of a professional market maker, the biggest issue with the JELLYJELLY incident is actually the price of contracts on HL, which did not use an aggregate index model but instead relied solely on spot prices from its own single site. This led to the successful targeted attack by the attacker. The attacker first emptied the order book of spot goods Due to the unreasonable contract index of Hyperliquid, the contract price increases with the spot price 📈， Explored the large empty orders I had previously opened 📉 At this point, the empty order needs to be cleared, but there are not enough multi-party counterparties available 📈 HLP is forced to take over and become a long position 📈 The attacker ultimately flattened the multiple orders they had previously opened 📈， Contract losses left to Hyperliquid, spot profits left to oneself Generally, the contract prices of CEX are aggregated using prices from multiple exchanges to prevent the problem of contract prices being manipulated by spot prices on a single exchange.