On-chain monitor MLM reports that an OKX wallet withdrew ~$3M USDC, split it across 19 wallets, and around 14:45 UTC built $20–30M in POPCAT longs with a ~$0.21 buy wall. Once the wall was pulled, the entire position was liquidated within seconds, with HLP taking over and losing ~$4.9M as POPCAT fell further. Hyperliquid later manually closed the position. MLM calls the incident a deliberate attack on HLP/Hyperliquid, not trader error.
Hyperliquid confirms $4.9M bad debt from the HLP vault after POPCAT's engineered liquidation. Attacker split $3M USDC across 19 wallets for $26M leveraged longs—manual close by team halted further bleed. DeFi vulnerability exposed in real time