Hyperliquid HLP lost $1.2 million due to taking over Fartcoin long positions; its APR over the past month is 0%.

According to Huoxun Finance, on-chain analysts pointed out that Hyperliquid HLP lost approximately $1.2 million within 24 hours due to taking over a large Fartcoin long position suspected of malicious activity (which has since been closed), corresponding to a drawdown of approximately 0.35%. The attacker's modus operandi was as follows: first, establish a large leveraged position on a cryptocurrency with low liquidity; deliberately push the position to a loss-making state, intentionally depleting their own funds; after the position was liquidated, the ADL mechanism was activated, forcing HLP to bear the loss and inherit the toxic position and its resulting bad debts; ultimately, although the attacker themselves suffered financial losses, HLP faced even greater losses. Hyperliquid HLP's real-time data shows that the Vault currently has a TVL of approximately $420 million, with an APR of 0% over the past month.