$30M Manipulation on Hyperliquid Sparks 43% Crash in POPCAT
POPCAT plunged around 43% on Wednesday following what on-chain observers are calling a roughly $30 million manipulation centered on Hyperliquid, the decentralized exchange behind the HYPE token. DeFi researcher Hanzo posted a detailed thread on X tracing a coordinated set of trades executed by an unknown actor about 13 hours before the sharp decline; the activity coincided with heavy price moves and stressed liquidity in POPCAT markets.
The incident highlights persistent vulnerabilities in thinly traded memecoin markets and on DEX order books, where concentrated orders or rapid liquidity removal can produce outsized price swings. For traders, it underscores the need to monitor on-chain flows, pool depth and large counterparties; for platforms and regulators, the episode raises fresh questions about market surveillance and preventive safeguards. Hyperliquid has not issued a public statement yet, and on-chain forensic work may clarify how funds moved after the event.