A honeypot is a token whose contract lets you buy but quietly blocks you from selling. The chart looks healthy because every trade is a buy. Nobody can get out, so the price only goes up, until the creator pulls the money and it goes to zero.
How it works
The sell function is rigged. It might fail for everyone except the creator's wallet, charge a 100% tax on sales, or require an approval that never gets granted. From the outside it looks like a normal token. The trap is only in the code.
How we catch it
We check the contract's code for known honeypot patterns and run a simulated buy and sell. If the sell fails or returns almost nothing, the token is marked JUNK no matter what else looks good.
Already holding one?
Try selling a tiny amount on the exchange the token trades on. If it fails, the money is most likely gone. Do not pay anyone who offers to "recover" it: that is a second scam aimed at the same victims.