Hyperliquid News Today: DeFi’s High-Leverage Trading Environments Increase Systemic Spoofing Threats
- Hyperliquid, a fast-growing decentralized perpetuals exchange, suffered a $4.9M bad debt loss from a third 2025 market manipulation attack targeting Solana-based memecoin POPCAT. - Attackers used $3M in USDC to create artificial demand via 19 wallets, triggering a 30% price drop and cascading liquidations that shifted losses to liquidity providers. - The incident highlights systemic risks in high-leverage, illiquid crypto markets, where spoofing attacks exploit thin order books and decentralized governan
Hyperliquid, a rapidly expanding decentralized perpetuals exchange, has experienced its third significant market manipulation incident in 2025, this time centered around the Solana-based
The exploit began when an unidentified individual withdrew $3 million in
This is the third time this year Hyperliquid has suffered such an attack, following similar incidents in March and July. The recurring nature of these exploits points to a fundamental risk in decentralized perpetuals trading, where limited liquidity and high leverage make the platforms vulnerable to spoofing and timing-based strategies.
The exchange’s rapid expansion—now reporting daily trading volumes exceeding $10 billion—and its dependence on community-backed liquidation pools have made it an attractive target. Experts point out that the attacker took advantage of the platform’s 50x leverage on select tokens, using 5x leverage on POPCAT to intensify the price crash.
Hyperliquid’s ongoing issues mirror larger problems within the crypto derivatives sector. The platform’s liquidity vault, intended to cover losses from liquidations, is now absorbing the impact of repeated attacks. Although the company has yet to announce updates to its risk controls, these events have led to renewed calls for tighter regulation of high-leverage trading on decentralized platforms.
The POPCAT incident also illustrates the increasing complexity of market manipulation in crypto. Unlike traditional finance, where regulations can discourage such actions, decentralized exchanges often lack the mechanisms to identify or stop spoofing as it happens.
As the digital asset market develops, the recurrence of these attacks may prompt decentralized exchanges to rethink their risk management and capital strategies. For now, Hyperliquid’s repeated breaches serve as a warning to both investors and developers in the space.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Influencer’s Meme Coin Promotion Now at the Heart of Fraud Litigation
- Influencer Haliey Welch faces federal lawsuit for promoting the collapsed HAWK meme coin, accused of earning $325,000 to mislead investors. - The HAWK token surged to $490M before crashing 93%, with claims insiders sold $1.27M in tokens minutes post-launch. - Welch's manager and company are co-defendants; the case links HAWK to other alleged "rug pulls" like TRUMP and LIBRA tokens. - Legal action highlights expanding scrutiny of influencers in crypto, as Welch's promotion amplified the token's fraudulent
Citadel Invests $200 Million in Crypto: Wall Street Makes Its Newest Move Toward Digital Assets
- Kraken secures $800M in funding at $20B valuation, led by Citadel Securities and institutional investors. - Funds will expand tokenized assets, derivatives, and global operations in Latin America, Asia-Pacific, and EMEA. - Citadel's $200M investment highlights Wall Street's growing trust in regulated crypto infrastructure and market integration. - Kraken's $1.5B+ 2024 revenue and $198M Q3 EBITDA underscore its financial stability amid favorable U.S. regulatory shifts. - Jane Street and DRW's participatio
Bitcoin News Today: Bitcoin's Hourly Long Liquidations Hit $40M; Short Positions See Gains
- Bitcoin's on-chain whale long positions face 870% unrealized losses as price drops below $90,000, triggering $77M in four-hour liquidations. - Market capitalization fell over $600B as Bitcoin breached its $103,227 2025 realized price, leaving average buyers with 13% losses. - Selloff accelerated by delayed Treasury liquidity and Trump's 2026 tariff plans, with Fed rate cuts seen as potential stabilizing factor. - Key support levels at $89,000–$91,000 identified; breakdown below $85,000 would invalidate b
ZK Atlas Enhancement: Driving On-Chain Expansion and Accelerating Layer-2 Integration
- ZK Atlas Upgrade (2025) introduces three core components—Atlas Sequencer, Airbender Prover, and zkSync OS—to solve blockchain scalability and cost challenges. - The upgrade reduces Ethereum gas fees by 90%, enables 70% cheaper transactions, and attracts $3.5B TVL, accelerating institutional adoption of ZK-based L2 solutions. - Market projections show ZK Layer-2 could reach $90B by 2031, driven by 60.7% CAGR growth and $15B in 2025 Bitcoin ETF investments into ZK projects. - Strategic investment themes in
