Hyperliquid Halts Services Following Massive POPCAT Market Impact

A single leveraged trade on the memecoin POPCAT led to significant market disruption, resulting in Hyperliquid pausing deposits and withdrawals. The incident triggered $25 million in liquidations, leaving a $5 million bad debt burden on the exchange’s liquidity provider. This incident highlights the vulnerability of decentralized exchanges to manipulation, raising concerns about market integrity and impact on liquidity providers. 💰