Hyperliquid HLP incurs a $1.2 million loss on long positions due to taking over Fartcoin

Gate News message, April 9, on-chain analyst 0xMacroGuy disclosed that Hyperliquid HLP lost about $1.2 million in the past 24 hours due to the settlement (now closed) of a large Fartcoin long position by a suspected malicious actor, which is equivalent to about a 0.35% drawdown.

According to 0xMacroGuy’s analysis, the attacker’s behavior pattern is as follows: first, it establishes large leveraged positions on lower-liquidity coins; then it intentionally pushes the position into a losing state, deliberately burning its own funds; once the position is liquidated, ADL (the automatic deleveraging mechanism) is triggered, forcing HLP to take on the loss, inheriting that toxic position and the bad debts it brings; ultimately, the attacker loses funds, but HLP bears a larger loss.

Hyperliquid HLP real-time data shows that the Vault’s TVL is temporarily reported at $420 million, and its APR over the past month has been 0%.