Hyperliquid bridge halts USDC withdrawals after $4.9M loss on POPCAT trade

The Hyperliquid bridge has halted USDC withdrawals since around 4:00 p.m. UTC, according to U.Today. The outlet noted that withdrawals for other assets may still be possible and that deposits remain unaffected. The suspension follows a market manipulation incident on the platform involving the memecoin POPCAT. An unidentified trader withdrew $3 million in USDC from OKX to open a large long position on the token, artificially propping up its price. The position grew to $30 million before the trader removed the buy wall, causing an immediate price crash. Due to the size of the liquidation, Hyperliquid's market-making vault, HLP, was forced to take over the position, ultimately closing it at a loss of $4.9 million.