The blockchain security company PeckShield has warned about HNUT, a memecoin on Solana themed 'Holly The Squirrel', after the coin plummeted 99% immediately after its launch.
This incident is yet another example of a rapid group rug pull occurring in the memecoin ecosystem on Solana.
HNUT raises concerns about rug pulls after a 99% price drop.
According to a post on X (Twitter), PeckShield reported that HNUT on Solana dropped by 99%, indicating a sharp price decline that led to the market cap of this coin nearly disappearing.
The price of HNUT has fallen from a peak near 0.007 USD to nearly zero, with only about 29,000 USD in remaining liquidity and a market cap of less than 1,400 USD.
This coin launched through Pump.fun on Solana under this contract, and this launch platform has drawn increased scrutiny in late 2025 for allowing the launch of short-cycle memecoins with almost no protective measures.
On-chain analysis of HNUT reveals that there were a significant number of bundled transactions immediately after the launch.
Reports indicate that about 78% of early trading activities involve bundled transactions, a phenomenon often associated with supply control by insider groups, where multiple wallets collaborate to pool coins before rapidly selling them off.
Chain alerts indicate rising costs from overlooking danger signals.
According to chain detective Specter, these warning signals can be verified on-chain, and the structure of this launch allows experienced traders to predict outcomes with relative ease.
In fact, alerts regarding HNUT were issued before the collapse, as Crypto Scam Hunter released a warning about the scam a day in advance and noted that bundled transaction behavior on the chain, along with supply clustering, are danger signals.
The post has prompted traders to steer clear, referencing transaction records showing coordinated coin transfers from multiple wallets into a single address, which is often a precursor to liquidity being pulled from the project.
After the collapse event, there are secondary risks that follow, as several community observers have found phishing scams in the form of airdrops being spread on X, attempting to exploit affected traders by posing as recovery tools or sending links for receiving funds. This has become an increasingly common strategy after a high volume rug pull.
The total loss value for traders cannot be accurately identified from public data alone, but the rapid 99% drop has nearly wiped out the total value for new buyers, while early project entrants may have profited somewhat before the collapse.
The HNUT incident reflects the ongoing risks in the Solana memecoin market, whether due to unregulated liquidity control, untransferred contracts, or unburned LP tokens, which still create opportunities for developers or insiders to exit positions quickly.
While memecoin activity is trending towards 2026, investors should check for contract assignments, liquidity locks, and careful distribution of coins in wallets before deciding to trade, as these factors are increasingly important on rapidly launched platforms that prioritize speed over security.