POPCAT Plunges After $30M Manipulation on Hyperliquid Triggers Liquidations
POPCAT tumbled after a wave of concentrated trading activity on Hyperliquid — a Solana-based derivatives venue — removed liquidity and forced massive margin liquidations. The roughly $30 million sequence of trades blew through stop levels and wiped out leveraged long positions, causing rapid price swings on Solana DEXs and sparking panic selling. On-chain observers noted large position cascades and a sharp drop in orderbook depth during the move.
The episode underscores how leveraged memecoin bets can amplify shocks and create contagion across the Solana ecosystem. Traders and liquidity providers should watch open interest, Hyperliquid’s account activity and pool depth as indicators of residual risk. For the broader market, the crash is a reminder that concentrated flows on smaller tokens can spill into SOL volatility and exchange funding rates, making risk management essential for leveraged participants.