POPCAT Flash Crash on Hyperliquid Sparks $4.9 Million Manipulation Allegations

An anonymous trader executed a sophisticated manipulation on the Hyperliquid decentralized exchange involving the POPCAT token, resulting in significant losses. The trader moved $3 million USDC from OKX, split it across 19 wallets, and opened massive, highly leveraged long positions on POPCAT, reaching $26–$30 million exposure. To amplify the effect, the trader placed a fake $20 million buy wall near $0.21, creating the illusion of strong demand before canceling the orders, causing the price to collapse. This triggered mass liquidations, wiping out the attacker's $3 million collateral and causing Hyperliquid's Liquidity Provider (HLP) to absorb approximately $4.95 million in bad debt. Analysts suspect this was a coordinated attack or a stress test of Hyperliquid's automated liquidity systems, marking the third major incident on the platform this year and prompting calls for stricter risk mitigation measures.

(Source：BeInCrypto)