A $145 million FARTCOIN bet triggered $51 million in liquidations and a 50% token crash

A massive $145.24 million long position on the meme coin Fartcoin, built on the Hyperliquid decentralized exchange, backfired spectacularly, causing the token's price to plummet by 50% in a single hour. The trade, intended to manipulate the price upwards, resulted in approximately $3 million in losses for the entity behind the wallets and triggered over $51 million in liquidations. The sheer size of the liquidation relative to Fartcoin's thin order book activated Hyperliquid's auto-deleveraging mechanism, forcibly closing profitable short positions to prevent system insolvency. Fartcoin, a Solana-based memecoin with no intrinsic value, had previously seen significant derivatives open interest, reaching over $1 billion at its peak. The token was also recently affected by the $270 million Drift Protocol exploit.

(Source：CoinDesk)