I\'m setting up a standalone Java service with an in-process, in-memory HSQL database.
Persistence.xml
Try explicitly specifying the SCHEMA name for the table/sequence being referenced.
I just faced a similar issue where in my sequence was not being recognized and then I realized that in my Hibernate @SequenceGenerator annotation I didn't prefix the schema to the sequence ref.
call next value for EXAMPLE_SCHEMA.TEST_SEQ