Papertrade was drained of $1.28 million just 8 hours after launch
One address repeatedly opened large long and short positions on Papertrade while buying and selling ETH on Hyperliquid to move the price spread. It made 305 trades, 296 of them profitable—a 97% win rate—with a typical holding time of 98 seconds and peak unrealized profits of $1.73 million.
The strategy worked because the platform directly used Hyperliquid’s best bid and ask prices. With a thin order book, a few million dollars was enough to move the price. The final 30 short positions, with a notional value of $297 million, were liquidated, turning a $450,000 loss into a net take-home profit of $1.28 million.
This strategy would only stop working if the oracle switched to a composite price feed from multiple platforms. Do you think Papertrade’s risk controls were too careless, or did it deliberately leave a loophole for volume manipulation?
$ETH $HYPE
One address repeatedly opened large long and short positions on Papertrade while buying and selling ETH on Hyperliquid to move the price spread. It made 305 trades, 296 of them profitable—a 97% win rate—with a typical holding time of 98 seconds and peak unrealized profits of $1.73 million.
The strategy worked because the platform directly used Hyperliquid’s best bid and ask prices. With a thin order book, a few million dollars was enough to move the price. The final 30 short positions, with a notional value of $297 million, were liquidated, turning a $450,000 loss into a net take-home profit of $1.28 million.
This strategy would only stop working if the oracle switched to a composite price feed from multiple platforms. Do you think Papertrade’s risk controls were too careless, or did it deliberately leave a loophole for volume manipulation?
$ETH $HYPE