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🐳 Daily Edition: Bitcoin ETFs add another $500M as Hyperliquid HLP Takes $5M Loss

🐳 Daily Edition: Bitcoin ETFs add another $500M as Hyperliquid HLP Takes $5M Loss

An anon trader alleged to be involved with the previous HLP attack via JELLYJELLY is back, causing HLP depositors to eat a $5M loss

Will McKinnon & Beluga
November 12, 2025

Bitcoin has retraced the small bounce we saw on Monday to fall back towards the infamous $100k line which was briefly broken at the end of last week. Despite the lackluster price action, Bitcoin ETFs gobbled up another $500M on Tuesday bringing the total net flow to over $60B since their launch. Ethereum ETF flows were more of a mixed bag, however that could soon be changing with new guidance from the Treasury and IRS on Monday indicating crypto ETPs (Exchange Traded Products) are allowed to both stake digital assets and share staking rewards with retail investors. This is the latest push from Treasury Secretary Scott Bessent to merge the traditional and digital financial worlds, and could prove to have a huge impact on non-Bitcoin ETF flows in the near future.

24 Hour Heatmap, Source: CoinMarketCap

In onchain news, there was another incident with Hyperliquid today as an anonymous trader allegedly manipulated the price of memecoin POPCAT to intentionally harm the community owned Hyperliquid liquidity vault (HLP). This is now the third time Hyperliquid has been attacked in a similar manner, indicating despite team messaging the underlying problems have not been solved. In short, the anonymous user dispersed funds across 19 wallets then began aggressively longing POPCAT totaling roughly $30M across all buy orders; once the coin had begun to see incoming buy liquidity from other traders who had noticed the surprisingly high buy orders, the user removed his bids triggering a wave of $63M in liquidations.

The liquidations included the attacker whose positions where then taken on by the HLP, eventually closing for a $5M loss. As I mentioned before this isn’t the first time HLP has been targeted and it surely won’t be the last. There’s a reason perpetuals markets are uncommon for lower-market cap assets, as the lower in valuation a given coin is, the easier it is to manipulate; this is definitely something the Hyperliquid team will