Whale Linked to JELLY Manipulation Drives ZEREBRO Price Up 300%, Earning $2.3M Unrealized Profit
Executive Summary
A crypto whale, previously tied to JELLY manipulation, has aggressively driven ZEREBRO's price over 300%, accumulating an unrealized profit exceeding $2.3 million and raising concerns about market integrity.
The Event in Detail
A prominent crypto whale, previously observed manipulating the JELLY token, has engaged in similar activity with ZEREBRO. This entity acquired a long position of approximately 85.86 million ZEREBRO tokens, valued at around $3.42 million, distributed across two distinct wallets. This significant accumulation has reportedly propelled ZEREBRO's price upward by more than 300%, resulting in an unrealized profit surpassing $2.3 million for the whale.
This pattern echoes a prior incident on March 26, 2025, involving the JELLY token. In that event, the same wallet allegedly orchestrated a market maneuver that caused a 500% price surge within a single hour. The strategy involved an initial offloading of a substantial amount of JELLY tokens, creating a sharp price drop, followed by an aggressive buy-back that led to the rapid price increase. This earlier manipulation reportedly resulted in Hyperliquid's HLP product incurring an unrealized loss of approximately $12.3 million on a short position. The recent surge in ZEREBRO aligns with reports from October 12, 2025, indicating that ZEREBRO had skyrocketed over 500% in a two-day period.
Market Implications
The observed manipulation of ZEREBRO by a single large holder underscores persistent concerns regarding market integrity and the potential for pump-and-dump schemes within the crypto space. Such activities can lead to significant financial losses for retail investors, particularly in low-liquidity altcoin markets where large positions can disproportionately influence token prices. The repeated nature of these events, as evidenced by the whale's previous involvement with JELLY, further erodes trust in the fairness and transparency of certain crypto markets. The substantial unrealized profits gained by the whale highlight the influence concentrated holdings can exert on token valuations and market sentiment, contributing to high volatility.
Broader Context
The ability of a single entity to significantly impact token prices through strategic buying and selling highlights the ongoing challenges in ensuring fair trading practices in decentralized finance (DeFi) and smaller-cap altcoin markets. On-chain analytics platforms, such as Lookonchain and Onchain Lens, play a critical role in identifying and tracking such activities by providing transparency into wallet movements and transaction data. This increased visibility, while not preventing manipulation, allows for post-hoc analysis and alerts the community to potential risks.
In response to these market integrity concerns, traditional financial institutions entering the digital asset space are implementing advanced surveillance measures. For instance, Laser Digital, the digital asset subsidiary of Nomura Group, announced a partnership with Solidus Labs to deploy crypto-native trade surveillance and risk monitoring capabilities. This collaboration, aimed at detecting anomalies and preventing market manipulation across centralized, OTC, and DeFi venues, reflects a growing industry effort to apply traditional finance (TradFi) discipline to crypto markets and build institutional confidence through enhanced compliance and transparency.
