Hyperliquid HLP loses $1.2M from Fartcoin long position takeover, monthly APR at 0%

ChainCatcher report: On X, on-chain analyst 0xMacroGuy posted that Hyperliquid HLP suffered approximately $1.2 million in losses within 24 hours—equivalent to a roughly 0.35% drawdown—after taking over a large long position in Fartcoin suspected to be held by a malicious actor (now closed). According to 0xMacroGuy’s analysis, the attacker’s pattern was as follows: establish a large leveraged position in a low-liquidity asset; deliberately push the position into losses, intentionally burning their own funds; once the position is liquidated, ADL activates, forcing HLP to absorb the loss and inherit the toxic position along with its associated bad debt; ultimately, the attacker loses their capital, while HLP incurs a much larger loss. Hyperliquid HLP’s real-time page shows the vault’s TVL currently reported at $420 million, with a 0% APR over the past month.