On the night of April 9, four wallets pumped the FARTCOIN token on the DEX Hyperliquid through long positions, triggering a cascade of liquidations. As a result, the trading platform's vault (HLP) lost approximately $1.5 million.

#PeckShieldAlert #HLP is down ~$1.5M in the last 24h

Attacker accumulated a $15M $Fartcoin long (145.24M tokens) across 4 wallets.
In a low-liquidity environment, the attacker triggered a "suicide" liquidation, forcing the ADL mechanism to kick in.
HLP was forced to absorb the… pic.twitter.com/PM8DCYcDRU

— PeckShieldAlert (@PeckShieldAlert) April 9, 2026

According to an analysis by PeckShield, the attacker amassed long positions worth $15 million (145.24 million FARTCOIN) across several addresses. This led to a temporary price surge of 25%, from $0.20 to $0.25.

Following this, order manipulation began. In a low liquidity environment, the attacker initiated a "suicide" liquidation. The closure of positions activated the ADL mechanism, causing the HLP system to absorb the losing position.

15-minute chart of FARTCOIN/USDT on Binance. Source: TradingView.

Researchers report that the attacker incurred a "paper" loss of about $3 million. However, they likely profited significantly by hedging the price on other platforms.

After the incident, FARTCOIN's price plummeted sharply. At the time of writing, the token had dropped to $0.19 (-7% over 24 hours).

Not Again, But Once More

This is not the first attack on the Hyperliquid vault. In March 2025, HLP lost about $4 million due to speculation involving Ethereum, where a major player opened a long position on 175,000 ETH with high leverage.

This resulted in a cascade of liquidations, forcing the trading platform to absorb some of the losses.

In the same month, a similar incident occurred with the JELLYJELLY token. An investor opened two long positions totaling $2.15 million and $1.9 million, while hedging with a short position of $4.1 million.

The price pump of the token by ~400% led to the liquidation of the short position, but due to its size, assets were transferred to HLP. The exchange had to halt trading on the token's contract, but the user managed to withdraw around $6.2 million.

Experts from 10x Research noted that Hyperliquid's transparency has enabled a "public hunt" for leveraged whales aimed at liquidating their positions.