Peak Degen Warfare? Alleged POPCAT Manipulation Hits Hyperliquid with $4.9M Loss
Analysis
Price Impact
HighAlleged manipulation of the popcat token on hyperliquid caused a rapid price inflation followed by an abrupt crash. this led to cascading liquidations and a significant $4.9 million bad debt absorbed by hyperliquid's community-owned liquidity vault (hlp), severely impacting the token's immediate value and hyperliquid's financial health.
Trustworthiness
HighThe news comes from coindesk, a reputable crypto news source, citing detailed analysis from blockchain sleuth lookonchain and commentary from market participants, lending high credibility to the reported events.
Price Direction
BearishThe manipulation tactic involved inflating popcat's price with massive leveraged long positions and large buy orders, only to pull the orders and trigger a crash. this inherently bearish event resulted in a sharp price decline and exposed the token to extreme volatility.
Time Effect
ShortThe price inflation, crash, and subsequent liquidations occurred rapidly, indicating an immediate, short-term impact on popcat's price and hyperliquid's liquidity. while reputational effects may linger, the direct price action was swift.
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Markets Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email Peak Degen Warfare? Alleged POPCAT Manipulation Hits Hyperliquid with $4.9M Loss Hyperliquid reportedly took a bad debt of $4.9 million due to alleged POPCAT manipulation. By Omkar Godbole | Edited by Shaurya Malwa Updated Nov 13, 2025, 6:49 a.m. Published Nov 13, 2025, 6:48 a.m. What to know : Hyperliquid, a decentralized derivatives platform, lost $4.9 million due to a manipulation of the POPCAT token. The attacker used $3 million in USDC to inflate the token's price, leading to a crash and cascading liquidations. Hyperliquid's liquidity vault absorbed the losses, resulting in a significant financial impact on the exchange. Decentralized derivatives platform Hyperliquid suffered a $4.9 million loss Wednesday after a carefully orchestrated manipulation of the POPCAT token, according to data shared by blockchain sleuth Lookonchain . The attacker withdrew $3 million in USDC from centralized exchange OKX, splitting it across 19 wallets to create a massive leveraged long position valued between $20 million and $30 million in POPCAT. STORY CONTINUES BELOW Don't miss another story. Subscribe to the Crypto Daybook Americas Newsletter today . See all newsletters Sign me up By signing up, you will receive emails about CoinDesk products and you agree to our terms of use and privacy policy . The attacker then placed $20 million buy order near $0.21, pulling in liquidity and pushing prices higher. Once the position was sufficiently inflated, the attacker abruptly pulled the buy orders, causing a crash in POPCAT prices, which led to cascading liquidations of leveraged positions, including the attacker’s own $3 million collateral, which was gone in seconds. Hyperliquid’s community-owned liquidity vault (HLP), which acts as a safety net for liquidations, had to absorb the remaining losses after collateral was exhausted, leading to a bad debt of $4.9 million, deepening the impact on the leading perpetual focused decentralized exchange. CoinDesk reached out to Hyperliquid for comment via X. One market participant described the episode as "peak degen warfare." "Someone torched 3M just to nuke liquidity and drag HLP into a 5M loss. Classic manufactured demand illusion followed by a flush. Nothing magical here. Just an attacker exploiting thin depth and automated LP absorption," the participant said on X. Hyperliquid Markets More For You OwlTing: Stablecoin Infrastructure for the Future By CoinDesk Research Oct 16, 2025 Commissioned by OwlTing Stablecoin payment volumes have grown to $19.4B year-to-date in 2025. OwlTing aims to capture this market by developing payment infrastructure that processes transactions in seconds for fractions of a cent. View Full Report More For You Tokyo Exchange Operator Mulls Limits on Digital Asset Treasury Firms: Report By Omkar Godbole 1 hour ago The operator is exploring stricter enforcement of listing rules and audits to protect investors. What to know : Japan Exchange Group is considering measures to limit the growth of companies hoarding digital tokens as treasury assets. The Tokyo Stock Exchange operator is exploring stricter enforcement of listing rules and audits to protect investors. Read full story Latest Crypto News Tokyo Exchange Operator Mulls Limits on Digital Asset Treasury Firms: Report 1 hour ago XRP Moves 3% as Ripple-Linked Token's ETF to Go Live at U.S. Market Open 1 hour ago Dogecoin Tests Weekly EMA Support as Bears Drive 5% Slide 1 hour ago Bitcoin Cash Gains 1.9% to $518 Breaking Key Resistance 3 hours ago Bitcoin Price Dips 0.9% as Heavy Volume Breakdown Tests Key Support 3 hours ago Trump Signs Bill to Reopen U.S. Government as Congress Suddenly Ramps Up Crypto Work 5 hours ago Top Stories Polymarket's Shayne Coplan: Blockchain Let Him Build a Global Force From His Bedroom 10 hours ago Trump Signs Bill to Reopen U.S. Government as Congress Suddenly Ramps Up Crypto Work 5 hours ago Dubai Court Freezes $456M Linked to Justin Sun’s Bailout of TrueUSD Issuer Techteryx 11 hours ago Bitcoin Plunges Below $102K Amid Weak U.S. Demand, Fed Divided on December Cut 13 hours ago Leap Therapeutics Surges 300% on $50M Winklevoss-Backed Zcash Bet 8 hours ago Crypto Investor Dan Tapiero Sees AI-Blockchain Crossover Fueling Next Big Wave 10 hours ago