Someone dumped around $20 million in a single trade on Hyperliquid solely to exploit an arbitrage opportunity by manipulating the simulated trading protocol Papertrade. Two wallet addresses used trades of this size to move `$ETH ` by 10 to 20 basis points, while building long positions worth hundreds of millions of dollars in notional value on Papertrade.
The sell-off was targeted arbitrage exploiting a flaw in the mechanism, and the brief volatility it caused was quickly erased. `$ETH `'s price action was not materially affected, and the overall trend remains bullish.
The sell-off was targeted arbitrage exploiting a flaw in the mechanism, and the brief volatility it caused was quickly erased. `$ETH `'s price action was not materially affected, and the overall trend remains bullish.