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Hoopa-U seems to be a totally overpowered abomination. 680 BST, offensive stats nearly rivaling that of Mega-Rayquaza. A solid choice of moves, access to boosting moves too. Low speed to take advantage of Trick-Room. Access to a handful of high base power moves. Magician isn't a bad ability either, and it only has one weakness, to a lesser-used type.

I get that Hoopa-U is in Ubers (I think) but at this point it feels like something everyone would want on every team.

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What generation? Also, the answer is at least partially the omnipresence of U-turn.
All generations since introduction, I suppose. U-turn is a fairly good reason I overlooked, but still. Hoopa-U is more of a wallbreaker anyways, although I feel it could be a fantastic sweeper.
In Gen 9, Hoop-U is currently in UU. While it is a scary threat, the things that hold it back is U-turn existing along with not having a good defense stat.
I guess it having a mediocre speed stat also doesn't help it either.

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To quote's Hoopa-U's Gen 6 and Gen 7 Smogon analyses, the reason is this:
Gen 6 Ubers analysis

Despite that, however, its viability should not be overestimated, as
stall is the least solid playstyle in Ubers and Hoopa-U is vulnerable
to all forms of status and entry hazards. In addition, Hoopa-U is
hindered by its mediocre Speed and pathetic Defense, which leaves it
susceptible to physical attackers and priority moves.

Gen 7 OU analysis

On the flipside, its middling Speed stat, despite being good for a
wallbreaker of its caliber, leaves it at the mercy of a number of
faster offensive threats in the metagame such as Mega Medicham,
Kartana, and Tapu Lele. It also carries poor physical bulk along with
a 4x weakness to one of the strongest momentum-gaining moves in the
game, U-turn, meaning that Hoopa-U tends to get overwhelmed by the
likes of U-turn Tornadus-T, Greninja, and Tapu Koko.

In short, the reasons are as follows:
1. 4x weakness to U-Turn is a severe downside, means it gets revenge killed by a lot of offensive threats.
2. Mediocre speed and pathetic defense means it easily gets revenge killed by faster offensive threats.
3. In the case of Gen 6 Ubers, stall-breakers not being in very high demand.
Source: https://www.smogon.com/dex/xy/pokemon/hoopa-unbound/
https://www.smogon.com/dex/sm/pokemon/hoopa-unbound/

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Oh so that's why it went down to UU in Gen 9
Hoopa was added to gen 9 recently, right? There's still a good chance that it can go back to OU.
Perhaps. It depends if players find a way to make it useful to counter common things or attack with brute force effectively.