She completed her first cargo run, but never made it home. On September 27, 1942, en route from Cape Town to Surinam, she encountered the heavily armed German commerce raider and her tender. Because of fog, the ships were only apart when they sighted each other. Ordered to stop, Stephen Hopkins refused to surrender, and Stier opened fire. Although greatly outgunned, the crew of Stephen Hopkins fought back, replacing the Armed Guard crew of the ship's lone 4-inch gun with volunteers as they fell. The fight was fierce and short, and by its end both ships were wrecks. Stephen Hopkins sank at 10:00. Stier, too heavily damaged to continue its voyage, was scuttled by its crew less than two hours later. Most of the crew of Stephen Hopkins died, including Captain Paul Buck. The survivors drifted on a lifeboat for a month before reaching shore in Brazil. Captain Buck was posthumously awarded the Merchant Marine Distinguished Service Medal for his actions. So was US Merchant Marine Academy cadet Edwin Joseph O'Hara, who single-handedly fired the last shots from the ship's 4-inch gun. Navy reservist Lt. Kenneth Martin Willett, gun boss for the 4-inch gun, was posthumously awarded the Navy Cross. The Liberty ships,, and, and the destroyer escort were named in honor of crew members of Stephen Hopkins, and in honor of the ship itself.
Captain Paul Buck, master of SS Stephen Hopkins, was given the Merchant Marine Distinguished Service Medal by The President of the United States. For determination to fight his ship and his perseverance in engaging the enemy to the utmost until his ship was rendered helpless. The award was given by Admiral Emory S. Land.
George S. Cronk, Second Engineer on the ship, sailed his lifeboat 2,200 miles for 31 days to save his shipmates. He was given the Merchant Marine Distinguished Service Medal by The President of the United States. The award was given by Admiral Emory S. Land.