FARTCOIN 'intentional liquidation' attack costs Hyperliquid pool $1.5M

The liquidity pool (HLP) on decentralized futures exchange Hyperliquid has lost approximately $1.5 million due to a deliberate self-liquidation attack by a whale. According to security firm PeckShield, the attacker built a $15 million long position in FARTCOIN across four wallets before triggering a forced liquidation in a low-liquidity price range. This activated the exchange's auto-deleveraging system, which transferred the losses to the protocol. Experts believe the attacker profited significantly by hedging the position on other exchanges. Meanwhile, the price of FARTCOIN plummeted 13% in one day, marking the steepest decline in the market.