Fartcoin Whale Liquidated for $3 Million on Hyperliquid After Suspected Manipulation Play

Onchain analysts flagged an alleged coordinated Fartcoin (FARTCOIN) manipulation attempt on Hyperliquid, resulting in $1.5 million in losses for the protocol’s liquidity vault. Blockchain security firm PeckShield and onchain tracker Lookonchain identified the incident on April 9, linking four wallets to a single entity. How the Alleged Fartcoin Manipulation Unfolded According to PeckShield, the attacker accumulated a $15 million Fartcoin long position totaling 145.24 million tokens across four wallets. The attacker then triggered what PeckShield described as a “suicide” liquidation in a low-liquidity environment. This forced Hyperliquid’s Auto-Deleveraging (ADL) mechanism to activate, pushing the toxic position onto the Hyperliquidity Provider (HLP) vault. Lookonchain confirmed that the wallets suffered a combined $3.02 million in liquidation losses. “A $3M loss on paper, but likely a massive net profit via cross-venue hedging,” the post added. Meanwhile, two short-side traders with addresses beginning 0x06ce and 0x4196 were auto-deleveraged by the ADL system, realizing approximately $849,000 in combined profits. “4 fresh wallets, same entity, all traced $USDC at the same time coordinated long-liquidated in under 3 hours after a 27% pump collapsed into a 30% crash. This is what whale-vs-whale manipulation looks like when both sides are playing the same game, and one of them blinks first,” Evening Trader Group wrote. Follow us on X to get the latest news as it happens The wallet 0x06ce appears to be one of the few addresses that exited in profit with a PNL of +$512k during the recent $FARTCOIN HLP incident.Following a coordinated attempt where traders built an 8-figure notional long and were later intentionally liquidated, HLP was left… https://t.co/OVmBywSmPo— Hyperdash (@hypurrdash) April 9, 2026 The fallout comes as Fartcoin’s price sees notable volatility. The meme coin surged to an intraday high of $0.25 yesterday, marking its highest level since late January...