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

Hyperliquid, a decentralized derivatives platform, experienced a significant loss of $4.9 million due to alleged manipulation of the POPCAT token. An attacker executed a scheme by withdrawing $3 million in USDC from the OKX exchange, spreading the funds across 19 wallets to establish a massive leveraged long position valued between $20 million and $30 million in POPCAT. The attacker placed a substantial buy order, inflating the token's price, before abruptly withdrawing the orders, which triggered a price crash and liquidations. This led to the liquidation of Hyperliquid’s liquidity vault, resulting in a $4.9 million bad debt, escalating the financial repercussions for the platform. The incident was characterized by one market participant as 'peak degen warfare,' highlighting the aggressive tactics employed to exploit market inefficiencies and thin liquidity.

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