Arkham Intelligence reported today on X that the recent crash in POPCAT’s price may have been the result of manipulation involving Hyperliquid, a decentralized perpetuals exchange. The token’s value dropped sharply after abnormal trading patterns were detected earlier this week.
Someone just passed $5M of bad debt on POPCAT to Hyperliquid’s Hyperliquidity Provider (HLP).
The individual affected had withdrawn $3M this morning from OKX, and split it across 19 different accounts, all used to long POPCAT with ~5x leverage.
These 19 accounts were liquidated… pic.twitter.com/esqeKudqlf
— Arkham (@arkham) November 12, 2025
Arkham’s analysis pointed to suspicious trading behavior suggesting coordinated short positions and liquidity pressure on the Hyperliquid platform. The incident raised concerns about the exchange’s internal safeguards and the potential influence of large players in decentralized trading environments.
The intelligence firm confirmed that investigations are ongoing to determine whether automated trading or insider activity contributed to the sudden decline. Hyperliquid has not yet issued an official statement. Traders continue to monitor both the POPCAT price and any forthcoming clarification from the exchange.
Source: Arkham Intelligence on X
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