Attacker Burns $3M to Trigger $4.9M Loss for Hyperliquid’s HLP Vault

A coordinated attack on Hyperliquid wiped out nearly $5 million from the protocol’s Hyperliquidity Provider (HLP) vault, when an unknown trader burned through $3 million in capital to manipulate the POPCAT market and trigger cascading liquidations. 

Blockchain analytics company Lookonchain shared on Thursday that it all started when the attacker withdrew 3 million USDC (USDC) from the OKX crypto exchange and split the funds into 19 fresh wallets. The trader then funneled the assets into Hyperliquid to open over $26 million in leveraged longs tied…