Massive Fartcoin Long Liquidation Triggers 50% Price Crash

Fartcoin is a Solana memecoin minted through Pump.fun in October 2024. It has no substantive utility, leaving its price heavily dependent on speculation. The incident occurred on decentralized perpetual futures exchange Hyperliquid, highlighting how liquidation risk from large leveraged positions in illiquid tokens can spill over into a platform's liquidity pools and counterparties.

On April 9, 2026, on-chain data showed that a trader had built a long position of about 145.24 million Fartcoin across multiple wallets. After the position was forcibly liquidated, the token fell from $0.2519 to $0.1244, a drop of about 50% in a single hour, leaving the trader with losses of approximately $3 million. Hyperliquid immediately activated its auto-deleveraging mechanism, forcibly closing profitable short positions. Two accounts realized combined gains of about $849,000.