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Key Takeaways
How bad is the price manipulation problem in 2025?
CertiK tracked 51 price manipulation incidents, resulting in $42 million in combined losses through 2025.
What happened with Popcat on Hyperliquid?
An alleged whale orchestrated a 43% price crash on 12 November by pumping Popcat to $0.21 with fake buy walls across 19 wallets, then yanking orders to trigger $63 million in liquidations.
Price manipulation attacks have emerged as the fastest-growing threat vector in crypto in 2025. The Popcat meme coin crash serves as a recent, brutal example of coordinated market manipulation.
CertiK Alert released damning data this week showing 51 price manipulation incidents have drained $42 million from traders so far this year.
Source: CertiK
The firm tracked 19 incidents in Q4 alone—nearly matching Q2’s peak of 20 incidents and confirming the upward trend that began in Q3 2024.
The Popcat scheme
The Solana meme coin became ground zero on 12 November when an anonymous trader executed a pump-and-dump on Hyperliquid’s decentralized perpetuals exchange.
The setup: pull $3 million from OKX, split across 19 wallets, open $26-30 million in long positions at 5x leverage, then prop up a fake $20 million buy wall at $0.21.
The artificial support lured retail traders into taking long positions. Then the whale yanked the orders.
Popcat crashed 43% to $0.12 within hours, liquidating $63 million in positions, including one $21 million loss. Hyperliquid’s vault absorbed $4.9 million in bad debt while the attacker’s collateral vaporized.
Wider pattern of crypto price manipulation
CertiK’s top five 2025 manipulation victims:
- Resupply: $9.6M [June]
- OdinFun: $7M [August]
- Loopscale: $5.8M [April]
- Future Protocol: $4.6M [July]
- Typus Finance: $3.4M [October]
These attacks exploit oracle vulnerabilities, thin liquidity, and leverage mechanics. Unlike phishing or code exploits, which drove $2.5 billion in losses during H1, manipulation requires only capital and coordination.
The DeFi dilemma
Traders called Popcat “peak degen warfare,” exposing how meme coins and DEXs create perfect manipulation conditions.
Most lack circuit breakers or position limits that traditional exchanges use to prevent cascading liquidations.
The attacker lost their $3 million but triggered ten times that damage. Hyperliquid paused operations during the chaos, raising questions about decentralization when emergency controls activate.
The platform implemented tighter risk controls, but the tension remains. Can decentralized exchanges balance permissionless trading with protection against coordinated attacks?