According to Arkham’s monitoring, an attacker allegedly carried out a deliberate exploit against HLP (Hyperliquidity Provider) on Hyperliquid. The attacker used 19 wallets and $3 million in principal to open a leveraged long position worth $20–30 million on POPCAT with 5× leverage, while placing large buy walls to support the price. Subsequently, the attacker suddenly removed the buy walls, causing a flash crash in POPCAT’s price and triggering the liquidation of their $3 million collateral to zero. Due to the lack of liquidity, HLP was forced to absorb the position, ultimately resulting in a bad debt loss of $4.9 million. Analyst @mlmabc noted that losing $3 million within seconds was not a mistake or negligence, but rather a deliberate attack targeting both HLP and Hyperliquid.