The post Fartcoin Flash Crash Exposes Hyperliquid to $1.5M Hit From Coordinated Attack appeared on BitcoinEthereumNews.com.

 A coordinated attack on Hyperliquid left HLP down $1.5M as Fartcoin crashed 26% after a 57% rally, tied to the same team behind XPL’s April 3 collapse. Fartcoin had been climbing for three straight days. A 57% surge pushed it to a high of $0.252 by April 9, drawing in bulls chasing momentum. Then 7:00 a.m. hit. The token dropped more than 20% in five minutes flat. By the time it bottomed below $0.18, the crash had wiped out most of what the rally built. The total decline landed above 26%, and the damage did not stop at the spot market. The Trap Was Already Set According to PeckShieldAlert on X, Hyperliquid’s HLP pool absorbed roughly $1.5 million in losses within 24 hours. The attacker had quietly built a $15 million Fartcoin long position across four wallets, accumulating 145.24 million tokens before the crash unfolded. The setup was deliberate. In a low-liquidity environment, the attacker triggered what PeckShieldAlert described as a “suicide” liquidation, forcing Hyperliquid’s auto-deleveraging mechanism to activate. HLP was left holding the toxic position. The paper loss sat around $3 million, but cross-venue hedging likely made it a profitable operation overall. That part is key. The loss was on Hyperliquid’s side. The attacker walked away. This Team Has Done This Before On-chain data firm Lookonchain flagged the incident and drew a direct connection to the April 3 XPL collapse. Two addresses, 0xBc1D9760bd6ca468CA9fB5Ff2CFbEAC35d86c973 and 0x3dBE077e7986657E95e1CC50089f17a5a4AF0AaE, link both events. The Fartcoin accumulation started shortly after the XPL flash crash, suggesting the same group pivoted operations almost immediately. Lookonchain outlined the playbook used in both cases. Before the rally, multiple addresses funneled funds into Hyperliquid to open high-leverage long positions. After locking in gains, the team withdrew all margin, moving their liquidation prices to near-bankruptcy levels. Then, coordinated spot selling across…

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Filed under: News - @ April 9, 2026 3:29 pm