The POPCAT manipulation triggered the Hyperliquid HLP to soak up $5M in losses.
Hyperliquid’s token value presently trades under key EMAs amid bearish momentum.
HYPE’s retail demand has dropped, and futures Open Curiosity has fallen to $1.56B.
Hyperliquid value has come underneath intense strain following a complicated POPCAT assault that left the decentralised derivatives platform reeling from multi-million-dollar losses.
The POPCAT hack, which focused Hyperliquid’s liquidity supplier system, uncovered vulnerabilities in Hyperliquid’s danger administration whereas elevating considerations about retail demand and general market sentiment for HYPE tokens.
POPCAT assault led to a $5M HLP loss
The POPCAT assault unfolded on November 12, when a dealer executed a sequence of manipulative trades throughout the POPCAT token market, utilizing a number of wallets to create a synthetic purchase wall.
In accordance with on-chain analysts, the dealer deployed roughly $3 million in USDC from the OKX alternate, distributing it throughout 19 separate addresses.
These wallets then opened almost $30 million in leveraged lengthy positions, inflating the value of POPCAT to over $0.21.
As soon as the purchase wall was eliminated, the POPCAT value plunged sharply, inflicting mass liquidations.
Hyperliquid’s market-making system, Hyperliquid Supplier (HLP), was compelled to soak up the ensuing positions attributable to skinny liquidity out there.
In whole, HLP incurred losses of roughly $4.9–$5 million.
The remaining lengthy positions had been handed to the Hyperliquidity Supplier (HLP) to liquidate.
HLP seems to have misplaced $4.95M closing out the positions. pic.twitter.com/Qfq9jcy4Mz
— Arkham (@arkham) November 12, 2025
Through the crash, the value of POPCAT fell from $0.21 to $0.13, leaving Hyperliquid to manually shut positions to stop additional monetary injury.
The assault highlighted how coordinated actions of enormous capital by a number of wallets can destabilise decentralised platforms.
Taking a look at how the assault unfolded, there are connections to prior manipulative behaviour noticed on tokens reminiscent of TST, ZEREBRO, JELLYJELLY, and HIFI, though Hyperliquid emphasised that deposits and withdrawals had been finally restored and regular buying and selling resumed.
Implications for Hyperliquid and DeFi markets
Notably, the POPCAT assault underscores ongoing dangers for decentralised exchanges that deal with leveraged tokens.
Whereas HLP efficiently absorbed the losses and guarded liquidity suppliers, the occasion demonstrates how skinny liquidity and concentrated positions can amplify the consequences of market manipulation.
Some commentators on Crypto Twitter have recommended that such assaults could not at all times be profit-driven, however slightly geared toward undermining the popularity of decentralised platforms.
On-chain forensic analyses have scrutinised hyperlinks between wallets used within the manipulation and entities reminiscent of BTX Capital, although allegations stay unproven.
Hyperliquid’s response, together with a short lived pause on its Arbitrum bridge, helped mitigate additional destabilisation.
Nevertheless, the incident is prone to weigh on investor sentiment, particularly as retail demand for HYPE has remained low following a big discount in futures Open Curiosity over the previous month.
Futures Open Curiosity for HYPE has additionally contracted from $2.08 billion on the finish of October to $1.56 billion, signalling declining danger urge for food amongst merchants.
HYPE value response to the assault
Regardless of the loss, Hyperliquid’s HYPE token confirmed relative resilience within the rapid aftermath.
HYPE value rose modestly from $37.77 to $39.39 following the decision of the assault, indicating that broader retail confidence within the token remained intact.
Nevertheless, the token has since pulled again to round $38.09 at press time, hinting at a cautious long-term outlook.
Technical indicators paint a bearish image, with HYPE buying and selling under its 200-day Exponential Transferring Common (EMA) slightly below $39 and failing to surpass the 50 and 100-day EMAs round $43.
Momentum indicators, together with the MACD and RSI, counsel persistent promoting strain, and analysts warn {that a} decisive break under the $35 help degree may speed up a decline towards the $30 mark.
