Huge bets on the meme coin Fatcoin sent the market soaring, but it ended with a 50% crash.
A group of wallets sought to drive up the price of Fatcoin by building a $145.24 million long position in the token on HyperLiquid, a decentralized perpetual futures exchange that has become the venue of choice for leveraged crypto bets during the ongoing war between the US and Iran.
Trading exploded on Wednesday, with the token plummeting 50% on an hourly candlestick from $0.2519 to $0.1244, costing the company behind the wallet around $3 million.
Fartcoin is a Solana-based meme coin minted on Pump.fun in October 2024 for 2 SOL. Although it has no intrinsic value and features a trading system where each trade generates a digital flatulence sound, it has developed a cult following to the point of being a top 100 token by market capitalization, a top 10 token by derivatives open interest, and peak futures exposure of over $1 billion.
On-chain data from Hyperliquid shows how positions are assembled and how they fall apart.
At least two wallets were used to build the long. Deal with tokens accumulated at 0x511c through TWAP orders. TWAP orders are an automated system that splits large purchases into smaller pieces over time to minimize market impact and buy at approximately $0.248 per token.
Address 0x71c97d opened long at approximately $0.205. Both have seen rallies that have taken Fatcoin from around $0.16 to $0.25 in a matter of days, and given the token’s low liquidity, the positions themselves likely contributed to this move.
It is unclear whether the wallets belonged to the same person or the group who intended to drive. $Fatcoinprice has increased.
However, the relaxation was not gradual. Address 0x511c was completely liquidated with no position left and ended at $0.00. According to liquidation records, 28.16 million people $Fatcoin Separately 6.7 million yen $Fatcoin– The USD position closed at $0.2155, resulting in a total liquidation amount of approximately $1.45 million.
Address 0x71c97d was liquidated in two separate fills, with 29.98 million tokens at $0.1822 and 7.49 million tokens at $0.1880, for a total liquidation value of approximately $6.87 million. That wallet has $35,074 left in it.
Because the liquidation amount was so large compared to the order book, HyperLiquid’s automatic deleveraging mechanism activated, forcing the closing of profitable short positions on the other side of the trade to prevent the system from accumulating bad debt.
The two short-biased accounts were both automatically deleveraged at $0.1929 on April 9th at 7:52am. Address 0x06ce was ADLed at 4.75 million in an account with historical total P&L of $15.1 million and 100% short position distribution. $Fatcoin The final profit was $512,522.
Address 0x4196 was ADLed for $15 million with an all-time high P&L of $12.9 million and a short sale allocation of 96.44%. $Fatcoin $336,599. Neither chose to close. Hyperliquid shut them down.
ADL’s total profit was $849,000 with zero fees, but this is the result of a mechanism rather than a trading decision. Both accounts are sophisticated short-biased operators with multi-million dollar track records on the platform. They were placed right and got paid for it, but it wasn’t on their own terms.
$Fatcoin It was also among the tokens stolen in last week’s $270 million Drift Protocol exploit. $Fatcoin It was leaked along with USDC, wrapped Bitcoin, and dozens of other assets. As of Wednesday afternoon, the token was trading at $0.1244.
