FARTCOIN’s sudden, no-warning crash drops more than 25%; 38.88 million liquidated—likely because XPL’s same-team traders were running the market

Based on monitoring by Coinglass and Hyperinsight, FARTCOIN briefly spiked up more than 27% in the early hours of April 9. But at exactly 7:00, the coin’s price plunged more than 20% within 5 minutes, with the cumulative drop exceeding 26%, falling to a low below $0.18. This trading wallet aligns closely with the team that saw XPL crash by 40%; the whales and the trading wallet were liquidated for $38.88 million.

Full timeline: A 57% surge to a 5-minute flash crash

(Source: CMC)

This round of FARTCOIN’s market move began on April 6, with a cumulative gain of 57% over three days. In the early hours of April 9, it briefly peaked at $0.252, then sharply reversed course after the short-lived high.

At exactly 7:00, six suspected trading wallets simultaneously withdrew margin funds, concentrating the liquidation line to hover near $0.22. The forced liquidation volume in a single batch reached $22.83 million, directly triggering the flash crash. The coin price dumped more than 20% within 5 minutes, then continued sliding lower; the cumulative decline exceeded 26%, and it fell below $0.18.

According to monitoring by Onchain Lens, within the past 4 hours, four wallets associated with the same entity collectively went long on FARTCOIN for $33.30 million, and afterward all were liquidated, resulting in losses of about $3.02 million.

On-chain decoding: Suspected precise replication of XPL’s trading playbook

On-chain investigators said the trading playbook used in this FARTCOIN move closely matches the event on April 3, when XPL surged violently and then flashed crashed by 40%. The source of the funds can be traced to two addresses: 0xBc1D and 0x3dB. After the XPL flash crash, the suspected trader cashed out about $1.60 million, and immediately moved it into FARTCOIN to buy the dip and accumulate inventory.

Breakdown of the suspected trading method

Position-building stage: Deposit funds into Hyperliquid from multiple addresses, open leveraged token long positions, drive the coin price upward, and attract follow-on capital

Trigger liquidation: After building substantial unrealized profit, the six addresses simultaneously withdrew margin at exactly 7:00, forcing the liquidation line closer to the market price; liquidation in a single batch reached $22.83 million

Spot-coupled selling: Suspected coordinated simultaneous dumping of spot across other platforms, forming two-way linked liquidation-driven price collapse between spot and derivatives

Second round of action: About 1 hour after the flash crash, the 0x5e1 and 0x71c addresses opened leveraged long positions again, setting an extremely narrow liquidation line; at 7:52, they fully got liquidated again, and the coin price fell further

Related funding source addresses (on-chain monitoring data; related suspicions still await verification): 0xBc1D9760bd6ca468CA9fB5Ff2CFbEAC35d86c973 0x3dBE077e7986657E95e1CC50089f17a5a4AF0AaE

Frequently Asked Questions

Was this flash crash of FARTCOIN confirmed to be market manipulation?

At present, on-chain data from Coinglass, Hyperinsight, and Onchain Lens show that the operational patterns of the relevant addresses closely match the XPL event. However, the related suspicions are still considered inferential analyses based on on-chain monitoring; no regulator has issued an official public statement to formally launch an investigation into this incident.

How does the trading method of “withdrawing margin to approach the liquidation line” work?

When someone holds leveraged long positions with substantial unrealized profit, they actively withdraw margin from the account, moving the liquidation line closer to the market price. Then, after large-scale selling in the spot market, when the coin price drops, it quickly triggers forced liquidation, igniting a chain reaction of liquidations—while the margin that the trader withdrew in advance can be retained.

How can retail investors identify signs of this kind of flash crash in advance?

Key warning indicators include: multiple unknown addresses synchronously depositing large sums into derivatives platforms within a short period, leveraged long positions being opened in concentrated fashion, the token surging sharply in the short term but with excessively high concentration of on-chain holdings, and unusually amplified trading volume without clear fundamental support. Related signals can be tracked using tools such as Hyperliquid’s large liquidation monitoring and Onchain Lens.