Hyperliquid temporarily halted withdrawals on Wednesday due to suspicious trading activities involving the Popcat meme coin. Traders using the Arbitrum-based platform were unable to deposit or withdraw funds as the decentralized exchange reacted to potentially harmful trades. Blockchain researcher Conor Grogan noted that withdrawals resumed within hours after users raised concerns on Discord. An admin clarified that while the Arbitrum bridge was paused, other transactions remained unaffected. A community vault on Hyperliquid suffered a loss of $4.9 million linked to liquidations caused by a trader known as MLM, who had taken significant long positions on Popcat. Despite a recent price increase, Popcat's value has plummeted 91% over the past year. MLM accused the trading activity of being a deliberate attack on Hyperliquid, although the exchange has not officially acknowledged the situation. The incident has raised questions about the platform's decentralization, especially after the delisting of the Solana-based token JELLYJELLY due to similar issues. Read more AI-generated news on: https://app.chaingpt.org/news

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