Hyperliquid Vault Loses $4.9M as Trader Burns $3M in Market Manipulation Attack

A trader deliberately sacrificed $3 million to manipulate Hyperliquid's POPCAT perpetual market, causing the platform's Hyperliquidity Provider vault to absorb $4.9 million in losses. The attacker distributed funds across 19 wallets, opened over $26 million in leveraged positions, and erected a fake $20 million buy wall that triggered cascading liquidations when removed. The manipulator's entire stake was liquidated during the event, with analysts describing the incident as a structural disruption rather than a profit-driven exploit.