Fartcoin pump-and-dump reportedly drains $1.3M on Hyperliquid
A coordinated pump-and-dump of the meme token Fartcoin on Hyperliquid reportedly erased $1.3 million in liquidity and user losses after rapid buys and large sell orders.
A coordinated pump-and-dump scheme of the meme token Fartcoin on the crypto exchange Hyperliquid reportedly removed $1.3 million from user accounts and liquidity pools after organizers pushed the price up and then sold into the rally.
On‑chain records show two wallets added to the long position while sell liquidity thinned. With few opposing orders available, Hyperliquid’s liquidity provider vault (HLP) absorbed the matching short exposure that would otherwise have come from other traders.
When the leveraged positions were liquidated, Hyperliquid’s auto‑deleveraging (ADL) system redistributed remaining exposure among counterparties. The redistribution corresponded with gains recorded to the coordinating wallets in the blockchain data.
The same pair of wallets has been linked to an earlier squeeze on the XPL token, indicating the addresses used similar tactics on another derivatives market.
FARTCOIN’s price history shows a peak near $2.48 in January 2025 and a decline of about 93% to trade near $0.17 at the time of reporting. The intraday move on Hyperliquid was about 20%. Available technical levels put immediate resistance near $0.20–$0.22 and a lower demand area near $0.12.
HLP acts as a counterparty of last resort when market counterparties are insufficient. ADL reallocates position exposure when liquidations would otherwise exceed available liquidity on the platform.
There were no public statements from Hyperliquid or the addresses linked to the trades at the time of reporting.
On‑chain observers have recorded similar sequences of concentrated buys, liquidations and ADL activation on other derivatives platforms earlier in the year.
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