by Coinstrooper Crypto Articles
Quick Take
  • Blockchain security firm PeckShield and onchain tracker Lookonchain identified the incident on April 9, linking four wallets to a single entity.
  • According to PeckShield, the attacker accumulated a $15 million Fartcoin long position totaling 145.24 million tokens across four wallets.
  • The attacker then triggered what PeckShield described as a “suicide” liquidation in a low-liquidity environment.
  • This forced Hyperliquid’s Auto-Deleveraging (ADL) mechanism to activate, pushing the toxic position onto the Hyperliquidity Provider (HLP) vault.

What Happened

Blockchain security firm PeckShield and onchain tracker Lookonchain identified the incident on April 9, linking four wallets to a single entity.

How the Alleged Fartcoin Manipulation Unfolded

According to PeckShield, the attacker accumulated a $15 million Fartcoin long position totaling 145.24 million tokens across four wallets.

Market Context

Onchain analysts flagged an alleged coordinated Fartcoin (FARTCOIN) manipulation attempt on Hyperliquid, resulting in $1.5 million in losses for the protocol’s liquidity vault.

The attacker then triggered what PeckShield described as a “suicide” liquidation in a low-liquidity environment. This forced Hyperliquid’s Auto-Deleveraging (ADL) mechanism to activate, pushing the toxic position onto the Hyperliquidity Provider (HLP) vault.

The fallout comes as Fartcoin’s price sees notable volatility. The meme coin surged to an intraday high of $0.25 yesterday, marking its highest level since late January.

However, over the past 24 hours, the token dropped more than 13%, ranking as the top loser among the 300 largest cryptocurrencies on CoinGecko. The token was trading near $0.17 at the time of writing.

Why It Matters

“A $3M loss on paper, but likely a massive net profit via cross-venue hedging,” the post added.

Details

Lookonchain confirmed that the wallets suffered a combined $3.02 million in liquidation losses.

Meanwhile, two short-side traders with addresses beginning 0x06ce and 0x4196 were auto-deleveraged by the ADL system, realizing approximately $849,000 in combined profits.

“4 fresh wallets, same entity, all traced $USDC at the same time coordinated long-liquidated in under 3 hours after a 27% pump collapsed into a 30% crash. This is what whale-vs-whale manipulation looks like when both sides are playing the same game, and one of them blinks first,” Evening Trader Group wrote.

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The post Fartcoin Whale Liquidated for $3 Million on Hyperliquid After Suspected Manipulation Play appeared first on BeInCrypto.