Decoding the POPCAT Attack: Understanding Its Impact and Lessons
November 13 marked a turbulent day in the decentralized finance world, with a liquidation attack on Hyperliquid’s POPCAT market sending ripples through the crypto community. With a strike force of $3 million distributed across 19 wallets, the attacker unleashed a well-funded strategy, resulting in a shocking $4.9 million loss for the liquidity vault of Hyperliquid. It’s a stark reminder of how precarious decentralized platforms can be.
The Long Position Setup: How the Attack Unfolded
What made this attack particularly audacious was the way the attacker set up a long position in POPCAT employing 5x leverage, effectively creating an enormous buy wall. Just when you thought things couldn’t get worse, the attacker pulled the wall away,…
