TLDRHyperliquid temporarily halted withdrawals and deposits after a trader manipulated the price of the memecoin POPCAT.Blockchain analytics firm Arkham reported that $5 million in bad debt from POPCAT was transferred to Hyperliquid’s liquidity provider.The trader opened leveraged positions on POPCAT using 19 wallets, resulting in exposure of $25.5 million.The price of POPCAT fell sharply, leading to the liquidation of the trader’s positions and causing significant losses.Hyperliquid’s bridge was inactive for over 20 minutes following the liquidations, disrupting platform operations.Hyperliquid temporarily suspended deposits and withdrawals on Wednesday after a trader attempted to manipulate the price of the memecoin POPCAT. The move followed a series of liquidations, resulting in substantial losses for the platform’s liquidity provider. The platform’s bridge was reportedly halted for over 20 minutes, causing significant disruptions to trading.$5 Million in Bad Debt Moves to Hyperliquid’s Liquidity ProviderBlockchain analytics firm Arkham reported that approximately $5 million in bad debt linked to POPCAT was transferred to Hyperliquid’s liquidity provider (HLP). This transfer occurred shortly before the suspension of withdrawals, raising concerns over the platform’s stability. The situation escalated when the trader, who removed $3 million from OKX, opened leveraged positions on POPCAT using 19 wallets.About 13 hours ago, someone withdrew $3M USDC from OKX and split it across 19 wallets.Around 14:45 CET, he started longing millions worth of POPCAT, placing roughly $20M worth of buy orders at $0.21.The combined long position grew to around $30M across those 19 wallets.…— MLM (@mlmabc) November 12, 2025The trader distributed the funds between the wallets and took on about $25.5 million in exposure. As POPCAT’s price declined, the trader’s positions were liquidated. The HLP inherited the remaining positions, suffering losses totaling $4.95 million when these positions were closed.Someone just passed $5M of bad debt on POPCAT to Hyperliquid’s Hyperliquidity Provider (HLP).The individual affected had withdrawn $3M this morning from OKX, and split it across 19 different accounts, all used to long POPCAT with ~5x leverage.These 19 accounts were liquidated… pic.twitter.com/esqeKudqlf— Arkham (@arkham) November 12, 2025Conor Grogan, a former Coinbase executive, confirmed the bridge’s halting during the liquidation. Hyperliquid has not provided a timeline for when withdrawals and deposits will be reinstated. The event drew attention to the vulnerabilities of decentralized exchanges (DEXs), particularly in situations involving high leverage and low liquidity.It appears that Hyperliquid bridge has stopped processing withdrawals. No activity in 21 minutes pic.twitter.com/NFSeVHhE1t— Conor (@jconorgrogan) November 12, 2025Manipulation Scheme Leads to Liquidations on HyperliquidAn on-chain analyst, MLMabc, revealed that the trader tried to manipulate the price of POPCAT by placing large buy orders worth $20 million. The orders, set at $0.21 per token, were placed around 14:45 CET. These orders temporarily inflated the price before the trader’s positions were liquidated.As the price of POPCAT sharply dropped, the trader’s strategy unraveled quickly. The resulting market movement led to the liquidation of the 19 wallets, causing major losses. The platform’s bridge became inactive shortly after these liquidations, further limiting the ability to move funds.Hyperliquid’s decision to halt transactions aimed to stabilize the platform and prevent further losses. This is not the first incident of market manipulation on the platform. In March, a similar situation involving the memecoin JELLYJELLY led to significant unrealized losses.This most recent disruption has raised concerns about the stability of decentralized exchanges and the risks associated with leveraged trading. Hyperliquid’s decision to halt withdrawals was seen as a necessary measure to address the immediate risks posed by the price manipulation.The post Hyperliquid Suspends Withdrawals After POPCAT Price Manipulation Losses appeared first on Blockonomi.