According to Lookonchain, Hyperliquidity Provider (HLP) experienced a loss of approximately $12 million in the last 24 hours due to a market squeeze. The wallet 0xde95 shorted $JELLY on the HyperliquidX platform and subsequently removed the margin, which led HLP to passively liquidate $4.5 million in short positions. Moreover, a newly created wallet, 0x20e8, opened a long position, further impacting the market dynamics. This incident underscores the risks associated with liquidity provision and short positions during volatile trading periods.