An attacker or malicious manipulation of POPCAT led to a loss of 4.9 million dollars in bad debt for Hyperliquid HLP

According to Arkham monitoring, an attacker is suspected of deliberately attacking HLP (Hyperliquidity Provider) on Hyperliquid. The attacker used 19 wallets and a principal of 3 million dollars to establish a POPCAT long position worth 20-30 million dollars with 5x leverage, and set up a massive buy wall.

Subsequently, the attacker suddenly removed the buy wall, causing the POPCAT price to flash crash, and their 3 million dollars in 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 dollars. Analyst @mlmabc pointed out that this behavior of losing 3 million dollars in a matter of seconds is neither foolish nor negligent, but rather a "deliberate attack" on HLP and Hyperliquid.