Hyperliquid HLP lost $1.2 million after taking over a long position in Fartcoin; its APR over the past month is 0%.

According to an article published on X by on-chain analyst 0xMacroGuy, Hyperliquid HLP lost approximately $1.2 million in 24 hours, equivalent to a drawdown of about 0.35%, due to taking over a large Fartcoin long position suspected to be malicious (now closed). 0xMacroGuy explained that the attacker's modus operandi was as follows: first, establish a large leveraged position on a low-liquidity coin; then deliberately push the position to a loss, intentionally burning through their own funds; once the position is liquidated, ADL (Advanced Debt Lending) is triggered, and HLP is forced to bear the loss, thus inheriting the toxic position and its associated bad debts; the end result is that the attacker loses funds, but HLP suffers even greater losses. The Hyperliquid HLP live page shows that the Vault's TVL is currently $420 million, with an APR of 0% over the past month.