Papertrade’s pricing vulnerability has been targeted
Two wallets used a single trade of around $20 million on Hyperliquid to move ETH by 10 to 20 basis points, while opening long positions with hundreds of millions of dollars in notional value on Papertrade.
Papertrade takes its pricing directly from Hyperliquid’s BBO, so even small limit orders can shift the mid-price. Open positions at distorted prices, then wait for quotes to revert and pocket the profit. If this vulnerability isn’t fixed, the protocol is an ATM.
Would you dare to place orders and take the other side of ETH on Hyperliquid in this market?
$ETH $HYPE $BTC #Hyperliquid #DeFi
Two wallets used a single trade of around $20 million on Hyperliquid to move ETH by 10 to 20 basis points, while opening long positions with hundreds of millions of dollars in notional value on Papertrade.
Papertrade takes its pricing directly from Hyperliquid’s BBO, so even small limit orders can shift the mid-price. Open positions at distorted prices, then wait for quotes to revert and pocket the profit. If this vulnerability isn’t fixed, the protocol is an ATM.
Would you dare to place orders and take the other side of ETH on Hyperliquid in this market?
$ETH $HYPE $BTC #Hyperliquid #DeFi