The 1,000x-leverage exchange Papertrade was drained of $1.28 million right after launch. The exploit involved using Hyperliquid to move ETH’s price and manipulate its own order book. The new platform’s risk controls were paper-thin, and the team is only now thinking to tighten position limits. This drama is more entertaining than the charts, but don’t try to catch a falling knife—the rules can change at any moment, and even if you make a profit, you might not be able to withdraw it.

#ETH