Hyperliquid pauses deposits and withdrawals amid POPCAT trading scheme speculation
Decentralized exchange Hyperliquid paused transactions due to suspected manipulation involving the POPCAT memecoin.Summary
Decentralized perpetuals exchange Hyperliquid temporarily halted deposits and withdrawals on Wednesday, citing maintenance, following speculation that a trader attempted to manipulate the price of the POPCAT memecoin. An onchain analyst suggested a trader moved $3 million USDC, initiated roughly $20 million in long buy orders for POPCAT, and when the buy wall was removed, the position was liquidated, causing the Hyperliquidity Provider (HLP) to absorb a $4.9 million loss before Hyperliquid manually closed the position. This incident is similar to a March manipulation event involving the JELLYJELLY memecoin. Experts noted that while Hyperliquid aims to compete with centralized exchanges, such events show it still has room to mature.
(Source：The Block)