Fartcoin's Bullish Bet Turns to Hot Air: $145M Long Goes Flat in 50% Crash

Someone really wanted to pump Fartcoin. Instead, they got deflation the hard way. And by deflation, we mean their portfolio just went to zero faster than you can say "to the moon."

A group of wallets attempted to push Fartcoin's price higher by building a $145.24 million token long position on Hyperliquid, the decentralized perpetual futures exchange that has become the venue of choice for leveraged crypto bets during the ongoing U.S.-Iran war. The trade blew up on Wednesday, crashing the token 50% in a single hourly candle from $0.2519 to $0.1244, and costing the entity behind the wallets roughly $3 million. Someone really thought they could nose their way to profit. They were wrong.

Fartcoin is a Solana-based memecoin minted on Pump.fun in October 2024 for 2 SOL. It holds no intrinsic value and features a transactional system in which each trade produces a digital flatulence sound. Yet it has built a cult following large enough to make it a top-100 token by market cap and a top-10 token by derivatives open interest, with over $1 billion in futures exposure at its peak. Yes, you read that correctly: a coin that literally makes fart noises has billion-dollar open interest. The market is beautiful.

On-chain data from Hyperliquid shows how the position was assembled and how it came apart. At least two wallets were used to build the long. Address 0x511c accumulated tokens through TWAP orders, an automated system that breaks a large buy into smaller pieces over time to minimize market impact, purchasing around $0.248 per token. Address 0x71c97d opened longs at approximately $0.205. Both were building into a rally that took Fartcoin from roughly $0.16 to $0.25 over several days, a move the position itself likely contributed to, given the token's thin liquidity. Smooth. Calculated. Completely doomed.

It is unclear whether the wallets belonged to the same person or a group of people who intended to drive $FARTCOIN's prices up. The unwind was not gradual, however. Address 0x511c was liquidated completely, ending at $0.00 with no positions remaining. Its liquidation records show 28.16 million $FARTCOIN and a separate 6.7 million $FARTCOIN -USD position closed at $0.2155, totaling roughly $1.45 million in liquidation value. Address 0x71c97d was liquidated on two separate fills, 29.98 million tokens at $0.1822 and 7.49 million at $0.1880, totaling roughly $6.87 million in liquidation value. That wallet has $35,074 left. After $145 million in notional exposure, they're left with enough to buy maybe two Grande lattes. Ouch.

The liquidation was so large relative to the order book that Hyperliquid's auto-deleveraging mechanism activated, forcibly closing profitable short positions on the other side of the trade to prevent the system from accumulating bad debt. Two short-biased accounts were auto-deleveraged at $0.1929, both at 7:52 AM on April 9. Sometimes being right still doesn't save you from getting rekt by someone else's terrible trade. Welcome to DeFi.

Address 0x06ce, an account with $15.1 million in all-time combined PnL and a 100% short position distribution, was ADL'd on 4.75 million $FARTCOIN for a closed profit of $512,522. Address 0x4196, carrying $12.9 million in all-time PnL and a 96.44% short allocation, was ADL'd on 15 million $FARTCOIN for $336,599. Neither chose to close. Hyperliquid closed them. Getting auto-deleveraged is like winning the lottery but having your rich uncle's estate executor take most of it. Technically a W, emotionally an L.

The combined $849,000 in ADL profits came at zero fees, an artifact of the mechanism rather than a trading decision. Both accounts are sophisticated short-biased operators with multi-million dollar track records on the platform. They were positioned correctly and got paid for it, but not on their own terms. Sometimes the universe gifts you money just to remind you who's in charge.

$FARTCOIN was also among the tokens stolen in last week's $270 million Drift Protocol exploit, where $4.1 million in $FARTCOIN was drained alongside USDC, wrapped bitcoin, and dozens of other assets. The coin can't catch a break. Or maybe it's just passing gas. Hard to tell anymore.

The token trades at $0.1244 as of Wednesday afternoon. Down 50% in an hour, up 0% in dignity.