Fartcoin plunges 28% as shorts rake in fat profits

Fartcoin (FARTCOIN), a Solana-based meme coin, experienced a 28% price drop, falling from approximately $0.25 to $0.17 within 12 hours. This decline was triggered by a large liquidation of a long position valued at $3 million, which was an apparent attempt to manipulate the market. Data from Lookonchain indicates that a trader initiated a 145 million FARTCOIN long position across four wallets, but this strategy backfired. Conversely, traders who had shorted FARTCOIN benefited from Auto-Deleveraging (ADL), with two wallets collectively earning $849,000 in profits. Some speculate that a coordinated group of traders on Hyperliquid, potentially linked to previous market manipulations, first drove FARTCOIN's price up by 20% before triggering their own liquidation. This strategy exploited Hyperliquid's market maker, which was forced to take the opposing side of the trades, becoming short on FARTCOIN. The subsequent liquidation then allowed short positions to profit. One wallet profited $512,000 from this event, continuing a winning streak and boosting its total profit to over $15 million. This incident highlights the risks associated with automated market makers in low-liquidity assets, as transparency can be exploited by sophisticated traders. The broader meme coin market has also been in decline, with Fartcoin having lost around 93% of its value since its January 2025 all-time high.

(Source：Crypto Briefing)