On the night of April 9, four wallets pumped the FARTCOIN token on the DEX Hyperliquid through long positions, triggering a cascade of liquidations. As a result, the trading platform’s storage (HLP) lost approximately $1.5 million.
#PeckShieldAlert #HLP is down ~$1.5M in the last 24h
Attacker accumulated a $15M $Fartcoin long (145.24M tokens) across 4 wallets.
In a low-liquidity environment, the attacker triggered a “suicide” liquidation, forcing the ADL mechanism to kick in.
HLP was forced to absorb the… pic.twitter.com/PM8DCYcDRU— PeckShieldAlert (@PeckShieldAlert) April 9, 2026
According to PeckShield’s analysis, the attacker accumulated longs worth $15 million (145.24 million FARTCOIN) across addresses. This led to a temporary 25% increase in the coin’s price—from $0.2 to $0.25.
Subsequent order manipulations ensued. In a low-liquidity environment, the attacker initiated a “suicidal” liquidation. The closure of positions activated the ADL mechanism, and the HLP system absorbed the loss-making position.
Researchers reported that the attacker’s “paper” loss amounted to about $3 million. However, he likely secured substantial profits by hedging the rate on other platforms.
Following the incident, FARTCOIN’s price plummeted. At the time of writing, the token had fallen to $0.19 (-7% in 24 hours).
Not Again, But Once More
This is not the first attack on Hyperliquid’s storage. In March 2025, HLP lost approximately $4 million due to Ethereum speculation—one major participant opened a long position on 175,000 ETH with high leverage.
This resulted in a cascade of liquidations, and the trading platform had to absorb part of the losses.
In the same month, a similar incident occurred with the JELLYJELLY token. An investor opened two longs worth $2.15 million and $1.9 million. A short position of $4.1 million served as a hedge.
The coin’s price pump of ~400% led to the liquidation of the short, but due to its volume, assets were transferred to HLP. The exchange had to halt trading on the token contract, but the user managed to withdraw about $6.2 million.
Experts from 10x Research noted that Hyperliquid’s transparency enabled a “public hunt” on leveraged whales to liquidate their positions.