Cryptocurrency exchange Hyperliquid has suspended deposits and withdrawals on the POPCAT trading pair due to concerns about potential price manipulation. The platform’s decision comes after a significant surge in POPCAT’s price, followed by a rapid decline, leading to widespread liquidation. 💰📈📉 😥
On-chain data from ArbiScan supports the suspicion of manipulation. An on-chain analysis revealed that an individual reportedly transferred $3 million USDC from the OKX exchange and allocated it to 19 different wallets. The user then initiated a long position in POPCAT worth approximately $20 million, aiming to push its price towards $0.21.
Following this buy wall’s lifting, the investor liquidated his entire position, resulting in a loss of around $4.9 million, primarily borne by Hyperliquid’s liquidity provider (HLP). The exchange subsequently closed the position manually.
This incident echoes a similar case involving a Solana memecoin called JELLYJELLY back in March, where Hyperliquid faced an unrealized loss of approximately $12 million.
*Disclaimer: This is not financial advice.*