An attacker or malicious actor manipulated POPCAT, resulting in a $4.9 million bad debt loss for Hyperliquid HLP.

CoinVoice has learned that, according to Arkham monitoring, an attacker allegedly deliberately targeted HLP (Hyperliquidity Provider) on Hyperliquid. The attacker used 19 wallets and $3 million in capital to establish a $20-30 million POPCAT long position with 5x leverage and set up large buy wall orders. Subsequently, the attacker suddenly withdrew the buy wall, causing the POPCAT price to flash crash, and their $3 million collateral was instantly liquidated to zero. Due to lack of liquidity, HLP was forced to take over the position, ultimately resulting in a $4.9 million bad debt loss. Analyst @mlmabc pointed out that this behavior—losing $3 million in seconds—is not foolish or negligent but a “deliberate attack” on HLP and Hyperliquid.