Hyperliquid loses $5M in POPCAT attack, HYPE price comes under pressure
The post Hyperliquid loses $5M in POPCAT attack, HYPE price comes under pressure appeared on BitcoinEthereumNews.com.
The POPCAT manipulation caused the Hyperliquid HLP to absorb $5M in losses. Hyperliquid’s token price currently trades below key EMAs amid bearish momentum. HYPE’s retail demand has dropped, and futures Open Interest has fallen to $1.56B. Hyperliquid price has come under intense pressure following a sophisticated POPCAT attack that left the decentralised derivatives platform reeling from multi-million-dollar losses. The POPCAT hack, which targeted Hyperliquid’s liquidity provider system, exposed vulnerabilities in Hyperliquid’s risk management while raising concerns about retail demand and overall market sentiment for HYPE tokens. POPCAT attack led to a $5M HLP loss The POPCAT attack unfolded on November 12, when a trader executed a series of manipulative trades across the POPCAT token market, using multiple wallets to create an artificial buy wall. According to on-chain analysts, the trader deployed roughly $3 million in USDC from the OKX exchange, distributing it across 19 separate addresses. These wallets then opened nearly $30 million in leveraged long positions, inflating the price of POPCAT to over $0.21. Once the buy wall was removed, the POPCAT price plunged sharply, causing mass liquidations. Hyperliquid’s market-making system, Hyperliquid Provider (HLP), was forced to absorb the resulting positions due to thin liquidity in the market. In total, HLP incurred losses of approximately $4.9–$5 million. The remaining long positions were passed to the Hyperliquidity Provider (HLP) to liquidate. HLP appears to have lost $4.95M closing out the positions. pic.twitter.com/Qfq9jcy4Mz — Arkham (@arkham) November 12, 2025 During the crash, the price of POPCAT fell from $0.21 to $0.13, leaving Hyperliquid to manually close positions to prevent further financial damage. The attack highlighted how coordinated movements of large capital through multiple wallets can destabilise decentralised platforms. Looking at how the attack unfolded, there are connections to prior manipulative behaviour observed on tokens such as TST, ZEREBRO, JELLYJELLY, and HIFI,…
Filed under: News - @ November 14, 2025 5:40 pm