Alleged POPCAT Manipulation Hits Hyperliquid with $4.9M Loss: Blockchain Analyst

Decentralized derivatives platform Hyperliquid reportedly sustained a $4.9 million loss due to a coordinated manipulation of the POPCAT token, as reported by blockchain analyst Lookonchain. The attacker funded their operation by withdrawing $3 million in USDC from OKX, splitting it across 19 wallets to establish a massive leveraged long position in POPCAT, estimated between $20 million and $30 million. The attacker then placed a large buy order near $0.21, artificially inflating the price before abruptly pulling the orders, causing a price crash and liquidating leveraged positions. Since the attacker's collateral was exhausted, Hyperliquid’s community-owned liquidity vault (HLP) absorbed the remaining $4.9 million loss, leading one market participant to describe the event as "peak degen warfare" involving the exploitation of thin depth and automated LP absorption.

(Source：CoinDesk)