POPCAT Memecoin Skyrockets 56% Before $21M Whale Liquidation Triggers 17% Crash on Hyperliquid

• Popcat surged 56% to a local high of $0.21, then dropped 12% to $0.13 as of this writing.

• A whale with $21 million leveraged position on Hyperliquid was liquidated.

POPCAT’s Meteoric Rise Ends in Chaos on Hyperliquid

The Solana-based memecoin POPCAT (POPCAT) saw a wild week of volatility, soaring 56% to above $0.21 before crashing 17% in a single day following the liquidation of a whale’s $21 million leveraged position on the decentralized exchange Hyperliquid.

The flash crash not only wiped out millions in open positions but also caused the exchange’s liquidity provider (HLP) to absorb heavy losses, prompting a temporary halt of deposits and withdrawals amid the chaos.

The event highlights the growing risks in memecoin trading, where speculative mania and leverage combine to create extreme swings and where decentralized exchanges face stress tests under the weight of massive, concentrated bets.

How a $30 Million Long Position Imploded

According to on-chain analysis, the debacle began when a trader withdrew $3 million USDC from OKX, splitting the funds across 19 wallets. Over the next few hours, the whale opened a series of long positions on Hyperliquid, amassing an estimated $20–30 million exposure to POPCAT at around $0.21 per token.

Initially, the trades fueled a sharp rally as aggressive buying pushed the token higher. However, once the trader removed his large buy wall, market liquidity evaporated. POPCAT’s price plunged rapidly, triggering automatic liquidations across all 19 wallets. Within seconds, the whale’s entire long position was wiped out, resulting in a loss of nearly $21 million in total value.

Hyperliquid’s automated systems stepped in to cover the collapsing positions. Still, the HLP (Hyperliquid Liquidity Provider) incurred a $4.9–5 million loss, forcing the platform to pause deposits and withdrawals for emergency maintenance.

Some analysts are viewing the incident as a possible “vamp attack,” a term used to describe a trader deliberately stressing a protocol’s liquidity to exploit vulnerabilities. However, no foul play has yet been confirmed.

Confidence Shaken but Hype Persists

Despite the chaos, traders on Twitter remain split between panic and optimism. POPCAT’s sharp retracement shook confidence in Hyperliquid’s stability, prompting several users to criticize the platform for slow communication and inadequate safeguards during extreme volatility.

At the same time, POPCAT’s long-term bullish narrative hasn’t completely faded. Before the liquidation, the token had been gaining traction as one of Solana’s breakout memecoins, joining the ranks of WIF and BONK.

Market data still shows strong accumulation trends: large wallets increased holdings by roughly 6% in the past month, while exchange balances dropped 5%, signaling declining sell-side liquidity. Trading volume and on-chain activity have surged as new retail interest builds. Rumors of a potential Binance listing and a fresh Korean exchange debut have fueled further speculation that POPCAT could reclaim momentum once the market stabilizes.

Volatility Ahead

From a technical perspective, POPCAT’s weekly chart remains volatile but not broken. The MACD recently flipped bullish, and the RSI is recovering from a liquidation-driven oversold zone. Analysts suggest the $0.17–$0.18 region may now act as key support, while resistance sits around $0.21–$0.23, the zone where the liquidation cascade began.

Source: Tradingview

If buying volume resumes and sentiment improves, a short-term recovery toward the $0.25 mark is possible. However, traders remain cautious as Hyperliquid’s liquidity depth and risk controls are under scrutiny following the $5M loss event.

The Bottom Line

The POPCAT liquidation saga underscores both the allure and the danger of memecoin speculation in decentralized markets. While whales can drive explosive rallies, the same leverage-fueled bets can trigger brutal reversals when liquidity thins out.

With Hyperliquid’s recovery measures still unfolding and Solana meme coins continuing to dominate retail attention, all eyes will be on whether POPCAT can regain its footing or if this event marks the start of a broader cooldown in the meme coin mania.