An attacker or deliberate manipulation of POPCAT caused Hyperliquid HLP to incur $4.9 million in bad debt.

According to ChainCatcher, as monitored by Arkham, an attacker allegedly carried out a deliberate attack on HLP (Hyperliquidity Provider) on Hyperliquid. The attacker used 19 wallets and $3 million in principal to establish a POPCAT long position worth $20-30 million with 5x leverage, and set up a massive buy wall.

Subsequently, the attacker suddenly removed the buy wall, causing the price of POPCAT to crash, and the $3 million collateral was instantly liquidated to zero. Due to a lack of liquidity, HLP was forced to take over the position, ultimately resulting in a bad debt loss of $4.9 million. Analyst @mlmabc pointed out that this act of losing $3 million within seconds was not stupidity or negligence, but a "deliberate attack" targeting HLP and Hyperliquid.