On-chain analyst 0xMacroGuy just discovered an interesting thing — Hyperliquid's HLP has been drained of about $1.2 million over the past 24 hours. It looks like someone did this through large long positions on Fartcoin.

This guy's tactic is like this: first, open leveraged long positions on tokens with low liquidity, then intentionally let himself lose money and burn it, and when the position gets liquidated, the ADL mechanism will trigger, forcing HLP to take over this bad position. The end result is that although the attacker loses money, the loss to HLP is even greater.

Currently, HLP's TVL is around $420 million, but the annualized yield over the past 30 days has dropped to 0%. This also quite clearly indicates the issue — such attacks are indeed testing HLP's risk management system.