A wallet group took a big gamble on the Solana-based meme coin "Fartcoin," but it completely failed on Wednesday. Long positions worth $145 million were forcibly liquidated, and traders suffered losses of about $30 million.

Fartcoin is a meme coin that was issued just last October on Pump.fun for 2 SOL. It has no intrinsic value and only emits a digital fart sound during each transaction, but it gained cult-like support and at its peak held futures positions exceeding $1 billion. It ranks in the top 100 by market capitalization and is among the top 10 in derivatives, showing its popularity.

Overleveraged trading on this meme coin was conducted on a decentralized perpetual futures exchange. At least two wallets were involved: one placed large buy orders around $0.248 via an automated order system, and another opened a long position at $0.205. These movements pushed Fartcoin from $0.16 to $0.25 over several days, but the low liquidity accelerated the subsequent decline.

The liquidation did not happen gradually but all at once. The first wallet was completely liquidated, with 2,816,000 tokens and a position worth about $6.7 million settled around $0.2155, resulting in a loss of approximately $1.45 million. The second wallet was also liquidated in two stages, totaling $6.87 million in liquidations.

This massive liquidation event also affected the exchange's system. An automatic leverage adjustment mechanism was triggered, causing two accounts holding short positions to be forcibly liquidated. These accounts had actually realized profits, but it was not their decision—it was a system outcome. They gained a total of $849,000 in fee-free profit, but this was due to luck, not trading skill.

The price plummeted 50% in one hour, from $0.2519 to $0.1244. Fartcoin was also one of the tokens stolen during last week's vulnerability attack on Drift Protocol, with $45M worth stolen. This incident highlights the dangers of meme coin speculation once again.