Hyperliquid HLP incurred a loss of 1.2 million dollars from taking over Fartcoin long positions, with an APR of 0% over the past month

On-chain analyst 0xMacroGuy posted on X that due to taking over a large long position in the suspected malicious actor's Fartcoin (which has now been closed), Hyperliquid HLP lost about $1.2 million within 24 hours, equivalent to about a 0.35% drawdown.

According to 0xMacroGuy's explanation, the attacker's behavior pattern is as follows: first, establish a large leveraged position in a low liquidity coin; intentionally push the position into a loss state, deliberately burning their own funds; once the position is liquidated, ADL is triggered, and HLP is forced to bear this loss, thereby inheriting this toxic position and the bad debt it brings; the end result is that the attacker loses funds, but HLP incurs a larger loss.

The real-time page of Hyperliquid HLP shows that the TVL of this Vault is currently reported at $420 million, with an APR of 0% over the past month.

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