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Binance is attacking Hyperliquid again? Hyperliquid Liquidity Provider (HLP) suffered a $4.9 million loss!
Here's what happened, explained simply:
1. Preparation (About 13 Hours Before the Main Action):
- The trader (a whale or rival?) withdrew $3 million in USDC (a dollar-pegged stablecoin) from OKX, a centralized crypto exchange
- They immediately split this into 19 separate wallets (Ethereum addresses listed in the tweet). This fragmentation is a common tactic to obscure tracking and distribute risk across multiple accounts.
2. Building the Position (Around 14:45 CET / 13:45 UTC):
- The trader deposited the funds into Hyperliquid
- They opened massive long positions on POPCAT, a Solana-based memecoin known for high volatility and low liquidity
- Total buy orders: Roughly $20 million at a price of $0.21 per POPCAT
- The positions grew to $30 million across the 19 wallets, creating a large "buy wall" that artificially propped up the price.
3. The Trigger and Liquidation (Seconds Later):
- The trader suddenly removed the buy wall (canceled or sold off the supporting orders)
- This caused POPCAT's price to dump rapidly
- The entire $20–30M long position got liquidated within seconds
- Under Hyperliquid's mechanics, when user positions get liquidated, HLP absorbs the losing side to maintain liquidity. Here, HLP took over the underwater position.
4. The Aftermath and Loss:
- POPCAT's price continued falling, amplifying the damage.
- HLP suffered a $4.9 million loss on this single event—equivalent to wiping out about 3 months of prior profits for the pool
- Hyperliquid's team manually closed the position to limit further bleeding
- As a precaution, the Arbitrum bridge (used for deposits/withdrawals between Ethereum and Arbitrum) was temporarily paused. Other operations remained normal, and the issue was expected to resolve quickly.
Source: @mlmabc
LoopDrops points checker is live!
Check your @hyperlendx points allocation https://t.co/uwhv2rGElS
LoopDrops auto-farms protocols in LHYPE’s underlying yield strategy. 100% of airdrops go directly to users.
Still to come @HypurrFi, @felixprotocol & more.
Tiny Wine mint info:
wen: v soon
supply: 2,222
price: 1 $HYPE
limit: 2
reserve: 60
whitelist price: 1 free
whitelist: @tinyhypercats holders as of Oct 24
Announcement schedule:
1st: Community telegram (link was given in a previous tweet by @andyhyfi)
2nd: This twitter acct.
recap of (upcoming) buy pressure on $HYPE:
- Assistance Fund: $3.5M/day
- @unitxyz: ~$50K/day (est.) should ramp up soon with stocks added
- $300M TWAP from @HyperStrat in the coming weeks
- $20M from @TroveMarkets freshly raised for their HIP-3 markets
- $5M TWAP left from Galaxy Digital
- @smartestmoney building the bottoms
- more HIP-3 markets will accumulate (under the radar)
Higher