Coordinated Wallets Blow Up $33M FARTCOIN Long and Stick HLP With the Bill

The Setup and the Crash

Hours before the crash, FARTCOIN was riding a three-day 57% rip to $0.252, lifted by the same macro bid that pushed Bitcoin through $72K on Iran ceasefire headlines. Four wallets linked to a single entity — primarily 0xBc1D and 0x3dBE plus two satellite addresses (0x5e1, 0x71c) with funds traced back to 0xBc1D — opened $33.3 million in leveraged longs at 5-10x across a concentrated four-hour window. That position represented roughly 15% of FARTCOIN's total open interest at the time.

Then at 7:00 AM UTC, $22.83 million in batch liquidations fired. Price dropped over 20% in five minutes and extended losses to 26%, bottoming below $0.18. Total whale liquidations (positions above $1M) hit $38.88 million. The four addresses themselves lost $3.02 million on the trade.

How HLP Got Stuck With the Check

The real damage landed on Hyperliquid's HLP vault. When the position blew past its liquidation price, the platform's auto-deleveraging (ADL) mechanism activated, forcing HLP to absorb the toxic long with its associated bad debt. The vault took an approximately $1.2 million loss — a 0.35% drawdown against its $420 million TVL.

On-chain analyst 0xMacroGuy described the mechanism: the attacker deliberately pushed the position into losses, "intentionally burning their own funds," so that ADL would activate and force HLP to inherit the position. The attacker lost $3M; HLP lost $1.2M. The vault's monthly APR sits at 0% as a result.

This is the core problem with ADL on thin-liquidity assets: it turns the insurance backstop into an attackable surface. The attacker doesn't need to profit on the trade itself — they can profit elsewhere (spot shorts, cross-venue hedges) while using the perp position as a delivery vehicle for bad debt.

Same Playbook, Same Wallets

This is not new behavior from this entity. On April 3, the same wallet cluster orchestrated a 40% flash crash in XPL using identical tactics — accumulate leveraged positions, withdraw margin to critical liquidation levels, then coordinate spot dumps to trigger a synchronized crash. That operation netted the group roughly $2.78 million in profit and cost HLP around $600K. Arkham Intelligence has labeled the entity "XPL-trade" and flagged similar activity on Aster that netted another ~$324K.

Onchain Lens flagged the FARTCOIN activity as "an apparent attempt to manipulate the token's price," citing the coordinated timing, concentrated position size, and accumulation patterns matching known manipulation strategies. The playbook works specifically because HIP-3 perps on hyna have thin order books relative to their notional — the same structural feature that makes these markets responsive to macro flow also makes them vulnerable to coordinated attacks on the liquidation engine.

What This Means for HIP-3 Risk

FARTCOIN has now printed five double-digit daily moves in three weeks, and two of them — this crash and the March 19 selloff — were amplified by the same thin-book mechanics. The difference this time is that the move was engineered rather than macro-driven.

For HLP depositors, the $1.2M loss is manageable against $420M TVL, but the pattern is the concern. If the same entity can repeat this across XPL, Aster, and now FARTCOIN with no apparent friction, every low-liquidity HIP-3 market becomes a potential vector. Hyperliquid tightened leverage limits after a similar HLP loss event in March 2025, but the current guardrails clearly weren't enough to prevent a replay on a different asset. The question is whether the protocol adjusts OI caps or ADL parameters on thin markets before the next one hits.

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