Hyper liquid (HYPE) plummeted 11% in an instant! Suspected of encountering malicious price manipulation, Liquidity suffered a loss of 4.03 million euros

HYPE Token flash crash, suspected to be caused by malicious actors infiltrating the liquidity pool

Decentralized exchange platform Hyperliquid (HYPE) recently experienced a market flash crash, with the HYPE Token price plummeting by 11% in just a few minutes. According to the community, this sudden drop may be related to some malicious actor (Evil Scum Actor) who appears to have exploited a vulnerability in the liquidation system to steal assets from the liquidity pool.

Decentralized finance (DeFi) has always been seen as a symbol of financial freedom. However, when opportunists discover and exploit vulnerabilities, the market can instantly plunge into panic. After the Hyperliquid incident, many investors rushed to escape, leading to a severe sell-off in the market, and the HYPE Token price suffered a heavy blow as a result.

Can the Hyperliquid insurance fund save the day? Community focuses on the impact on the ETH market

After the incident, the market began to focus on whether the insurance fund of Hyperliquid could withstand this impact. Some community users directly stated: 'Welcome to ETH hell, where the $285 million long position is suspected to have been taken over by insiders!' This implies that a large long position may be related to insiders of Hyperliquid, and this position may be forcibly liquidated under severe market volatility, further exacerbating market panic.

HLP Gold Vault suffered heavy losses, the community questioned whether this was an attack on Hyperliquid

In addition to the HYPE Token's flash crash, the HLP treasury responsible for providing liquidity in Hyperliquid also appears to have been severely affected. Some users suspect that this turmoil is not just a simple liquidation event, but a planned attack. 'This is too bizarre, it looks like an attack on Hyperliquid,' one user pointed out, suggesting that the HLP treasury may have been 'completely looted' in this storm.

After the incident, the HLP Treasury instantly lost $4.03 million. According to the description, this belongs to the community-owned treasury, used to provide liquidity for Hyperliquid, perform liquidations, and accumulate fees.

DeFi security issues are in the spotlight again, Hyperliquid needs to respond urgently

Currently, Hyperliquid has not yet made a formal response to this incident, but the market has already plunged into a state of unease. This storm once again highlights the risks in the DeFi sector, where even with advanced technology, the entire market may still plunge into chaos instantly once an attack or vulnerability is exploited. Whether Hyperliquid can quickly remedy the situation and strengthen its risk control mechanisms will be the focus of market attention in the near future.

This article Hyperliquid (HYPE) flash crash 11%! Suspected of encountering malicious price manipulation, liquidity funds loss of 4.03 million, first appeared on Chain News ABMedia.