A new DEX was exploited for $1.28 million in arbitrage just hours after launch, adding another dramatic case of 1,000x leverage.
Papertrade, a perpetual futures exchange built on Hyperliquid, recently launched with leverage of up to 1,000x. Its quotes are pegged to Hyperliquid’s mid-market price. On launch day, a trader exploited this mechanism by opening positions on Papertrade, then placing large buy and sell orders on Hyperliquid—$ETH —to move the reference price, netting approximately $1.28 million in a single day. The trader withdrew $2.48 million from the platform that day, having deposited only about $1.2 million.
In a dramatic twist, the wallet held 30 ETH short positions at 660x leverage for over three hours that night. The positions were eventually liquidated, resulting in a loss of $450,000. Papertrade said it has tightened position limits and claimed that the trader later returned most of the profits to the pool. This is the platform’s account and has not been independently verified.
#DEX #Hyperliquid
(Source: The Block)
⚠️Risk warning: The above is for sharing market information only and does not constitute investment advice. Investing involves risks; proceed with caution.
Papertrade, a perpetual futures exchange built on Hyperliquid, recently launched with leverage of up to 1,000x. Its quotes are pegged to Hyperliquid’s mid-market price. On launch day, a trader exploited this mechanism by opening positions on Papertrade, then placing large buy and sell orders on Hyperliquid—$ETH —to move the reference price, netting approximately $1.28 million in a single day. The trader withdrew $2.48 million from the platform that day, having deposited only about $1.2 million.
In a dramatic twist, the wallet held 30 ETH short positions at 660x leverage for over three hours that night. The positions were eventually liquidated, resulting in a loss of $450,000. Papertrade said it has tightened position limits and claimed that the trader later returned most of the profits to the pool. This is the platform’s account and has not been independently verified.
#DEX #Hyperliquid
(Source: The Block)
⚠️Risk warning: The above is for sharing market information only and does not constitute investment advice. Investing involves risks; proceed with caution.