Something important just happened on Hyperliquid that everyone trading there should understand. A coordinated group of traders built an eight figure notional long in $FARTCOIN over four hours. The same wallets linked to the XPL squeeze. The price surged 20%. Here is where it gets chaotic: When a coordinated group pushes a low liquidity asset aggressively on Hyperliquid HLP acts as the market maker of last resort. It takes the other side of trades that can't find natural counterparties. As the longs overwhelmed available liquidity HLP ended up short Fartcoin. Then the coordinated group deliberately got liquidated. This triggered auto-deleveraging (ADL). When HLP's short position became too large relative to available liquidity Hyperliquid's system forcibly closed opposing positions to balance the book. HLP was left holding a $13 million long position in Fartcoin at a loss. One wallet (0x06ce) exited with $512K profit during the chaos. The same wallet has booked $1.24M on BTC, $2.18M on SOL, and holds $6.3M in unrealized profit. $15.6M all time PnL. Six day win streak. Still short BTC, ETH, SOL and HYPE. This is the known vulnerability of any automated market making system operating in low liquidity assets. Hyperliquid tightened leverage limits after $XPL. A similar playbook just ran again on Fartcoin. On the one hand, the system is completely transparent. Every position, every liquidation, every ADL event is onchain and verifiable in real time. But that transparency cuts both ways, sophisticated actors can see exactly what HLP is holding and position around it. Every system has growing pains. Hyperliquid's are just fully visible onchain. Sources and early coverage: @hyperdashtrades @hypurrdash @LuckyXBT__ and https://t.co/1eQmHNkaTR were on this early $HYPE