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Hyperliquid is experiencing significant losses once more. Reportedly, a group of coordinated crypto wallets propelled FARTCOIN up by 20% on Hyperliquid in less than four hours, subsequently exploiting the platform’s own liquidation mechanisms against it. What was the actual loss incurred by Hyperliquid’s liquidity vault, and does the platform have inherent vulnerabilities to this strategy?
On-chain analysis identified two connected wallets that amassed an eight-figure notional long position in FARTCOIN over several hours, causing a sharp price increase as liquidity diminished, which compelled the Hyperliquid liquidity provider vault (HLP), serving as a last-resort counterparty, to take on the opposing side.
#PeckShieldAlert #HLP has lost approximately $1.5M in the past 24 hours.
The attacker built a $15M long position in $Fartcoin (145.24M tokens) across four wallets.
In a low-liquidity setting, the attacker initiated a “suicide” liquidation, triggering the ADL mechanism.
HLP was compelled to absorb the… pic.twitter.com/PM8DCYcDRU— PeckShieldAlert (@PeckShieldAlert) April 9, 2026
The coordinated traders then initiated or permitted liquidations on their own long positions, activating the Hyperliquid auto-deleveraging (ADL) mechanism. The total profit and loss from this operation amounted to +$1.3 million. The same wallets had previously been associated with a similar squeeze on XPL, indicating a recurring pattern.
This incident arises amid ongoing concerns regarding Hyperliquid’s structural framework, as the broader memecoin market continues to exhibit signs of coordinated manipulation across various platforms.
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Can FARTCOIN Crypto Recover After Hyperliquid Incident?
Despite the engineered surge in FARTCOIN, the token’s long-term chart presents a more troubling narrative. The coin reached a peak of $2.48 in January 2025 and has since lost about 93% of its value, currently trading around $0.17. The 20% spike on Hyperliquid is merely a minor fluctuation in the context of this decline.
Volume context is significant here. FARTCOIN operates in a thin market, which is precisely why the coordinated long allegation on Hyperliquid was effective initially. Thin order books result in exaggerated price movements in response to relatively small capital flows, making the token a frequent target for manipulation that has characterized the 2025 memecoin environment.
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For FARTCOIN, immediate resistance is located in the $0.20–$0.22 range, which previously served as support during Q4 2025 before the decline. Below the current price, $0.12 marks the next recognizable demand zone. Moving averages are aligned bearishly and are trending downward, with the price trading significantly below both.
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Maxi Doge Targets Early Mover Upside as Memecoins Flash Manipulation Risk
The chart of FARTCOIN presents an unsettling reality for late entrants: by the time a memecoin is being utilized for eight-figure coordinated squeezes, the potential for asymmetric gains has already shifted to early holders.
Pursuing the spike is a strategy that benefits others’ profit and loss. The rotation play and identifying the next leveraged memecoin narrative before it materializes are where the true advantage lies. Maxi Doge ($MAXI) is positioning itself directly within that framework. The ERC-20 token centers around a 1000x leverage trading culture, embodying the bull market momentum.
WHERE ALL THE BULLS AT? WE DON’T QUIT. pic.twitter.com/J30E70EV5f
— MaxiDoge (@MaxiDoge_) March 31, 2026
The current presale price is $0.00028, with nearly $5 million raised thus far. Staking also provides a substantial 60% APY for early participants. Features include holder-only trading competitions with leaderboard rewards, a Maxi Fund treasury for liquidity and partnership deployment, and meme-centric marketing that resonates well on social media.
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The post Fartcoin Crypto Pump and Dump Hurts Hyperliquid: Coordinated $1.3 Million Drain? appeared first on Cryptonews.
