Hyperliquid Manipulation Causes 43% POPCAT Price Drop, $63M Liquidations

POPCAT Memecoin Experiences Major Price Drop

POPCAT's price fell by 43%, from $0.21 to $0.12, following a manipulation event on Hyperliquid.
An unknown trader withdrew $3 million in USDC from OKX, distributed it across 19 wallets on Hyperliquid, and initiated long positions worth $20-$30 million on POPCAT.
The trader created a $30 million buy wall at $0.21 to simulate demand, drawing in real traders.
When the buy wall was removed, POPCAT's price collapsed, leading to widespread liquidations.
The trader lost their $3 million collateral; Hyperliquid's HLP system absorbed open positions, incurring an additional $4.9 million loss.

Impacts on Hyperliquid

This incident is the third major disruption for Hyperliquid in 2025, raising concerns about its liquidity management.
The platform paused its Arbitrum bridge but maintained normal deposit and withdrawal operations.
Speculation arises over whether the event was a deliberate stress test or attack.

Market Reactions

Total liquidations reached around $63 million after the manipulation.
Hyperliquid’s native token, HYPE, dropped by 7% to $38.25 according to CoinGecko.

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