Fartcoin (FARTCOIN) traders lost over $3 million in liquidations on Hyperliquid after onchain analysts flagged what they called a coordinated manipulation attempt using four linked wallets.
Hyperliquid Whale Liquidation
Blockchain security firm PeckShield and onchain tracker Lookonchain identified the incident on Apr. 9. Both linked four freshly funded wallets to a single entity.
The entity accumulated a $15 million long position — totaling 145.24 million Fartcoin tokens — across those wallets. It then triggered what PeckShield described as a "suicide" liquidation in a thin-liquidity environment.
That forced Hyperliquid's Auto-Deleveraging (ADL) mechanism to kick in.
The system pushed the toxic position onto the platform's liquidity vault, known as the Hyperliquidity Provider (HLP), which absorbed roughly $1.5 million in losses.
Lookonchain confirmed the four wallets suffered a combined $3.02 million in liquidation losses. Still, the tracker suggested the entity may have profited overall. "A $3M loss on paper, but likely a massive net profit via cross-venue hedging," the post noted.
Two short-side traders — with addresses starting 0x06ce and 0x4196 — were auto-deleveraged by the ADL system and realized about $849,000 in combined profits. Evening Trader Group described the sequence as "whale-vs-whale manipulation" after a 27% pump collapsed into a 30% crash within three hours.
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Fartcoin Price Volatility
The meme coin had surged to an intraday high of $0.25 the day before, its strongest level since late January.
But the rally reversed sharply. Fartcoin dropped more than 13% over the past 24 hours and ranked as the top loser among the 300 largest cryptocurrencies on CoinGecko. The token was trading near $0.17 at the time of writing.
Fartcoin has experienced wild price swings in recent weeks, oscillating between sharp rallies and steep selloffs as meme coin speculation remains elevated across decentralized exchanges. Hyperliquid itself has faced repeated scrutiny over large leveraged positions that stress its liquidity vault, with several high-profile incidents drawing attention to the platform's ADL mechanism in recent months.
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