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Four Linked Wallets Lose $3.02 Million After FARTCOIN Long Liquidations

Four Linked Wallets Lose $3.02 Million After FARTCOIN Long Liquidations

According to the latest update, Hyperliquid’s HLP absorbed losses after an attacker used four wallets to build large FARTCOIN longs, triggering liquidation and ADL under low-liquidity conditions.

HYPE
FARTCOIN

Fact Check
The available evidence suggests the claim may be based on a real reported incident: Odaily traced one source to a specific Lookonchain post and another to a Hyperliquid vault URL, indicating there was an upstream narrative about four wallets, FARTCOIN positions, and HLP impact. However, in this run I could not obtain fetch-validated content from the Lookonchain post or Odaily pages, and the Hyperliquid vault URL only returned a generic shell rather than substantive event data. The remaining search results, including the CoinGecko snippet and the IOSG Ventures article, are either indirect or only contextual. Because the core details—$3.02 million loss, four linked wallets, attacker behavior, and ADL under low liquidity—are not confirmed by fetch-validated primary evidence among the collected sources, the statement cannot be rated likely true on this record.
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Summary

Earlier reports said four wallets linked to one entity opened large FARTCOIN long positions and were liquidated for a combined $3.02 million loss, in activity Onchain Lens said appeared aimed at market manipulation. The latest update says an attacker built roughly $15 million in FARTCOIN long positions across four wallets and, in low-liquidity conditions, triggered forced liquidation that activated ADL. Hyperliquid’s HLP then absorbed bad positions and debt, losing about $1.5 million over the past 24 hours. The update adds that HLP’s book losses reached $3 million, while cross-venue hedging may have produced a net profit.

Terms & Concepts
  • ADL: Auto-deleveraging, a mechanism that reduces or transfers positions when liquidations cannot be fully absorbed by the market.
  • FARTCOIN: The cryptocurrency token at the center of the liquidation event, used in the large long positions described in the report.
  • HLP: Hyperliquid’s liquidity backstop vault, which can take over distressed positions and absorb losses during liquidation stress.