From Fart to Flatline: How a $145M Leveraged Bet Turned Fartcoin Into a $3M Lesson in Humility

A $145 million leveraged long on the memecoin Fartcoin went full Chernobyl on Hyperliquid, sending the price into freefall and torching roughly $3 million in equity—because when you’re riding a rocket made of flatulence, expect turbulence.

The trade didn’t just stumble—it combusted mid-air on Wednesday, with Fartcoin plunging from $0.2519 to $0.1244 in a single hourly candle, a 50% haircut that wasn’t a sale event but a forced exit via liquidation guillotine. Two wallets had been quietly stacking the rocket fuel: one thought they were playing the long game, the other just forgot to set a stop-loss. Spoiler: neither made it to space.

On-chain forensics reveal a classic memecoin tragedy in three acts. Wallet 0x511c began averaging in via TWAP orders at $0.248—because nothing says “sophisticated strategy” like dollar-cost averaging into a coin that toots when you trade. Meanwhile, 0x71c97d got in cheaper at $0.205, helping inflate the bubble that eventually became their own personal Hindenburg. Together, they pushed Fartcoin from $0.16 to $0.25, a rally likely greased by their own oversized bets in a pool drier than a Vegas blackjack table.

Then came the unwind—less a deflation and more a spontaneous combustion. Wallet 0x511c was wiped clean, balance sheet now reading $0.00 like a degen Darwin award recipient. Their liquidation? 28.16 million FARTCOIN and another 6.7 million in FARTCOIN-USD futures, all closed at $0.2155, totaling $1.45 million in fireworks. Poof.

Wallet 0x71c97d didn’t go quietly—they got liquidated in two acts. First, 29.98 million tokens at $0.1822, then 7.49 million at $0.1880, for a combined $6.87 million exit punch. The wallet now holds $35,074, which, at current prices, buys about 282,000 FARTCOIN—enough to trigger a small concert of digital farts, but not enough to cover the shame.

The liquidation was so massive it tripped Hyperliquid’s emergency eject button: auto-deleveraging (ADL). When the system’s too fragile for natural market forces, it resorts to fraternal sacrifice—forcing profitable shorts to close so the exchange doesn’t eat the loss. It’s like the blockchain version of “you’re not leaving until someone else takes your seat.”

At 7:52 AM on April 9, two shorts got the boot. Wallet 0x06ce, a battle-scarred warrior with $15.1 million in all-time PnL and a 100% short bias, was ADL’d on 4.75 million FARTCOIN, locking in $512,522 in gains. Wallet 0x4196, with $12.9 million in lifetime profits and 96.44% short exposure, was hit on 15 million FARTCOIN for $336,599. Neither tapped “close”—the exchange did it for them, like a mom turning off the Xbox at midnight.

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