Huo Xing Finance reports that on April 9, according to PeckShield monitoring, the attacker established a $15 million long position in $Fartcoin on Hyperliquid across four wallets (totaling 145.24 million tokens), then deliberately triggered a "suicidal" liquidation under low liquidity conditions, forcing the ADL (Auto-Deleveraging) mechanism to activate. This compelled the HLP liquidity pool to absorb toxic assets, resulting in bad debt and an estimated paper loss of $3 million; HLP suffered approximately $1.5 million in losses over the past 24 hours. PeckShield noted that the attacker likely pre-positioned through cross-market hedging, suggesting actual net profits may far exceed the reported paper losses.
Attackers Trigger 'Suicide' Liquidation on Hyperliquid, Causing $1.5M Loss to HLP
MarsBitShare
Summary
On April 9, attackers exploited low liquidity on Hyperliquid to open a $15 million long position in $Fartcoin across four wallets. They executed a “suicide” liquidation, triggering the ADL mechanism and forcing HLP to absorb toxic assets. This resulted in a $3 million paper loss, with HLP suffering a $1.5 million loss within 24 hours. PeckShield noted that the attackers likely employed a stop-loss strategy and hedged across markets, suggesting their risk-to-reward ratio may have been highly favorable—actual profits could exceed reported losses.
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