Fartcoin (FARTCOIN), a Solana-based meme coin born from an AI experiment called Truth Terminal, tanked 28% in the last 12 hours, sliding from about $0.25 to $0.17 after a mega-long liquidation blew up $3 million.
Data tracked by Lookonchain shows a trader opened a 145 million FARTCOIN long across four wallets in an attempt to manipulate the market but the plan appeared to backfire, resulting in a $3 million liquidation.
On the flip side, FARTCOIN shorts profited from Auto-Deleveraging (ADL), with two wallets collectively earning $849,000 in profits.
Someone tried to manipulate the $Fartcoin market, building a 145.24M $Fartcoin long position across 4 wallets, but was liquidated, taking a $3.02M loss.
Meanwhile, $Fartcoin shorts profited from ADL (Auto-Deleveraging) — 0x06ce and 0x4196 were auto-deleveraged, realizing $849K… pic.twitter.com/INvyMAgJwP
— Lookonchain (@lookonchain) April 9, 2026
Coordinated trade sent FARTCOIN up 20% before liquidation event
Some crypto traders speculate that the FARTCOIN crash was caused by a group of traders on Hyperliquid associated with the same wallets behind the earlier XPL squeeze.
These traders first built a large long position in FARTCOIN, pushing the price up 20%. Hyperliquid’s HLP, which acts as the market maker of last resort, had to take the other side of trades when there were not enough buyers. This left HLP short on FARTCOIN.
The traders then triggered their own liquidation. Auto-deleveraging automatically closed opposing positions to balance the system.
One of the wallets that profited from the event, identified as 0x06ce, made $512,000 from it, continuing a six-day winning streak and bringing its all-time PnL to more than $15 million.
The event exposes a known risk for automated market makers in low-liquidity assets: while Hyperliquid is fully transparent and on-chain, that same transparency allows sophisticated actors to anticipate and exploit its positions.
Something important just happened on Hyperliquid that everyone trading there should understand.
A coordinated group of traders built an eight figure notional long in $FARTCOIN over four hours. The same wallets linked to the XPL squeeze. The price surged 20%.
Here is where it… https://t.co/tfc6VtCAWs
— Cosimo Capiτal ⚜️ (@CosimoCapital) April 9, 2026
The wider meme coin collapse
The meme coin market has been in freefall since July 2025, with total market capitalization falling 65% to roughly $29 billion.
Fartcoin, launched in October 2024 at $0.0029, soared over 9,300 percent to an all-time high of $2.5 in January 2025. Since then, the token has lost around 93 percent of its value.
