papertrade

🚀 #PaperTrade opens trading on October 10, offering up to 1,000x leverage on HyperEVM. DefiLlama tracked roughly $102M in deposits ahead of launch.

⚠️ Key details traders should know:

🔹 Payout queue: If the pool cannot cover a winning trade’s profit, the unpaid amount becomes a claim in a queue. Traders get their original collateral back, but profits may be delayed.

🔹 Synthetic positions: Papertrade uses $HYPE midpoint prices, but its own pool acts as the counterparty. Trades aren’t matched directly on #Hyperliquid .

🔹 #paper token: Realized trading losses drive token issuance. Staking rewards depend on eligibility, available pool capital, and payout-queue status.

With extreme leverage and potentially delayed profit payments, pool liquidity and settlement rules are crucial risks to watch.

📰 PaperTrade co-founder Jez’s journey is pretty counterintuitive: he’s been liquidated multiple times, but also bounced back through spot trading. Looking back, his first piece of advice for ordinary traders isn’t “find a more accurate direction”—it’s to avoid rushing into derivatives.
He says that even if you get the direction right, 8x leverage can still turn random fluctuations into negative expected returns. Leverage also has a very practical downside: once you open a large position, it’s easy to keep adding to it. Honestly, getting the direction right doesn’t mean your account will survive long enough for your thesis to play out.
🔥 As for growing a small account, Jez’s answer is just as direct: focus on one or two opportunities you truly believe in. Diversification is more about protecting your account; it doesn’t necessarily help you grow it. But this approach clearly isn’t something everyone can copy. He stresses that strong conviction should come from understanding the asset—not from going all in because the chat is buzzing.
💡 He also advises against quitting your job just to trade. Treat your salary as a steady source of capital, and keep your powder dry until the right opportunity comes along. You can start by asking yourself: “If I could make only one trade this year, would I choose this one?” If the answer is no, it may just be a marginal opportunity.

👀 Jez believes it’s hard to talk people out of speculative urges in the market. Rather than pretending nobody will gamble, it’s better to build better products. He also spoke about his own shift from trading to building PaperTrade, and noted that spending a year or two on a project that doesn’t work out can sometimes hurt more than a bad trade.
🤔 This is his own journey, not a formula that works for everyone. Which do you agree with more: starting with spot and patiently waiting for opportunities, or concentrating your bets on assets you have strong conviction in?
#加密交易 #现货交易 #衍生品 #PaperTrade

A trader successfully manipulated the price of Ethereum (ETH) on Hyperliquid via Papertrade, a newly launched 1,000x leverage trading platform, netting $1.28 million. However, on Saturday evening, the same wallet was forcibly liquidated after holding 30 short positions for more than three hours, ultimately losing $450,000. The incident highlights the enormous risks of high-leverage trading and price manipulation.

$ETH #Papertrade #Hyperliquid #CryptoTrading

A new exchange’s first lesson: Use $20 million to move a nine-figure market.

PaperTrade launched on HyperEVM just on the 10th, touting 1,000x leverage. The very next day, on-chain sleuths uncovered what appeared to be two wallets using roughly $20 million in $ETH buy orders on Hyperliquid to push the market up 0.1%, then turning around and cashing in on nine-figure longs on their own platform. The cheekiest part? The official docs themselves warned that this move “could be exploited”—a vulnerability that practically reported itself.

Even cheekier: the supposedly 1,000x-leveraged pool started with a balance of zero, meaning winners’ payouts depended entirely on losers depositing funds first. So are the people playing this game traders—or roulette players?

Pick a side: A) Smart strategy B) A pump-and-dump preview. Let the arguments begin in the comments. $BTC #Hyperliquid #PaperTrade

On-chain anomaly worth watching: ETH trading volume on Hyperliquid has overtaken BTC over the past 24 hours, reaching about $1.1B, per Hyperliquid News data reported by PANews on Oct 11.

The twist: analysts suspect the spike is tied to a possible mechanism exploit at PaperTrade, a protocol built on Hyperliquid's order book. Trader Rune flagged on X that PaperTrade's own docs disclose a known "attack" risk — its pricing relies on the BBO (best bid and offer), a path that can be manipulated to move prices.

Volume surges usually mean bullish hype; this one might be an exploit trail. Watch PaperTrade's response and whether volume normalizes. Not financial advice.
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An on-chain anomaly worth watching: According to Hyperliquid News data, reported by PANews on Oct 11, ETH's trading volume on Hyperliquid over the past 24 hours has overtaken BTC's, reaching about $1.1 billion. But this surge in volume may not be driven by bullish sentiment—the market suspects it may be related to a possible mechanism exploit at PaperTrade. Trader Rune pointed out on X that PaperTrade's official documentation had already disclosed an "attack" risk in its pricing mechanism: pricing relies on the best bid and offer (BBO) in Hyperliquid's order book, creating a potential path for price manipulation.

A surge in trading volume is usually a sign of heightened interest, but this time it may be a trail left by an attack. Watch how PaperTrade responds and whether trading volume falls back. Not investment advice; for informational purposes only.

$ETH $BTC
#Hyperliquid #DeFi #PaperTrade

The launch was loose as a sieve, and the house came first to run up the market

Papertrade was accused of manipulation and a loophole, and the official explanation was that the initial position limits were set too wide. Last night, someone on Hyperliquid used BTC and ETH BBO to pull off a move, and only now are they starting to tighten the parameters. Slow queueing can even be spun as built-in anti-manipulation — this mouth can draw more than a candlestick chart.

The parameters have been tightened to the point of being “almost never profitable,” which basically means: retail can come on in, and if you lose you’re paying tuition to the protocol; if you win, come back next lifetime to withdraw it.

Brothers who got stop-loss hunted by BTC and ETH wicks on Hyperliquid last night, gather up and report in. Where did you place your orders, and how much did you get swept for?

$BTC $ETH $HYPE #Hyperliquid #Papertrade

Papertrade’s leverage tide has gone out

24-hour notional trading volume was $678 billion. Open interest shrank from $3.3 billion to $1.3 billion, shedding 60% in 12 hours. Margin fell in tandem, from $20.29 million to $14.34 million—a 30% drop.

With high leverage and zero fees, traders bet directly against the protocol’s LPs, and the positions built up at the peak are being rapidly unwound. PAPER can only be minted from user losses or liquidations. With OI dropping so quickly, staked positions and future minting will shrink too.

Would you dare place orders here to take the other side of the LPs, or wait until OI is back at $2 billion?

$HYPE $BTC $ETH

#HyperEVM #Papertrade

Papertrade positions shrink by 60% in one day

- In its first 24 hours, notional trading volume reached $678 billion, while open interest fell from $3.3 billion to $1.3 billion
- Margin dropped from $20.29 million to $14.34 million, a decrease of about 30%

This high-leverage betting market on HyperEVM is cooling off fast. PAPER is minted entirely from user losses and liquidations. If you’re still holding a position, can you handle these margin levels?

$PAPER $HYPE $ETH

#Papertrade #HyperEVM

Rune warns of a potential risk of price manipulation in PaperTrade

Crypto trader Rune says PaperTrade’s official documentation describes a potential protocol-level risk of price manipulation. According to a screenshot shared by Rune and cited by ChainCatcher, a vulnerability could allow an attacker to use Hyperliquid’s BBO—the best bid and ask prices—to influence prices.
Rune says the concerns also include unresolved potential manipulation vectors, contract economics, exposure controls, operational safeguards, and permission management.
In addition, Rune shared a post by user boblob, who claimed that two wallets appeared to be taking advantage of PaperTrade. According to the post, trades worth around $20 million briefly moved ETH’s price on Hyperliquid by between 10 and 20 basis points. These claims have not been independently verified.
Boblob warned that the issues should be fixed soon to avoid potential consequences for the protocol’s long-term sustainability.

#Cripto #Hyperliquid #PaperTrade #DeFi

$RUNE

📊 Analysis: Papertrade is not connected to Hyperliquid’s official oracle price feeds, creating a flaw in its pricing mechanism. A trader exploited this discrepancy to manipulate the market, making approximately $1.28 million.

Core risk: When prices in simulated or paper trading diverge from the real market, they are highly susceptible to arbitrage and manipulation.

#Hyperliquid #Papertrade #Oracle #TradingSecurity

Papertrade vulnerability exploited

On October 11, an X user alleged that two wallets used single trades of around $20 million on Hyperliquid to move ETH’s price by 10 to 20 basis points, then opened long positions worth hundreds of millions of dollars on Papertrade. For now, this is only a one-sided allegation.

The vulnerability exploits Hyperliquid’s order-book BBO: Papertrade executes directly at the quoted price, with no safeguards to block abnormal quotes. If it isn’t fixed soon, the platform will be unviable in the long run.

At this ETH price, would you go long or bet against it?

$ETH $BTC $HYPE #Papertrade #Hyperliquid

Papertrade’s spread gets picked off

Two wallets used single trades of around $20 million on Hyperliquid to push ETH prices by 10 to 20 basis points, then opened hundreds of millions of dollars in notional long positions on Papertrade. For now, this is only an allegation.

Papertrade uses Hyperliquid’s BBO directly as its execution price. Small limit orders can move the midpoint by one or two ticks without being filled. Once quotes return to normal, those positions worth hundreds of millions of dollars become a source of profit. Without an independent reference price, abnormal quotes can’t be blocked.

Pick a side on ETH: if you dare to open a position on Papertrade before the bug is fixed, reply 1; if you’ll only watch from the sidelines on Hyperliquid, reply 2.

$ETH $HYPE $BTC #Hyperliquid #Papertrade

Less than 12 hours after Papertrade went live: $3.3 billion in positions, backed by just $20.29 million in margin 🧮

Papertrade, a synthetic perpetuals protocol on HyperEVM that launched at 10:00 p.m. last night, showed these figures on its official website this morning:

📊 Cumulative notional trading volume: over $573 billion
📊 Open interest: $3.322 billion
📊 Margin backing all positions: $20.29 million

Divide $3.322 billion by $20.29 million, and the average leverage comes out to roughly 164x.

First, here’s how it works 👇

1️⃣ Prices are taken from the midpoint of Hyperliquid’s order book BBO. There’s no matching engine; users trade directly against the protocol’s LPs.
2️⃣ It touts high leverage, zero slippage, and no funding fees.
3️⃣ PAPER had a zero initial supply, with no premine or allocations for the team or VCs. The only way to mint it is through user losses or liquidations. When LP liquidity is below $2 million, every $1 lost mints 100 tokens. LP liquidity is now above $2 million, so emissions have started to taper off.

In other words, to get PAPER, you first have to lose money. Within an hour of launch, users had already lost a cumulative $4.73 million.

Now, the issue that surfaced today ⚠️

Trader Rune pointed out that Papertrade’s own official documentation says attackers can manipulate prices using the BBO on Hyperliquid’s order book. This attack vector has yet to be addressed.

Community member boblob shared two wallets that allegedly used trades worth around $20 million to move ETH’s price on Hyperliquid by 10–20 basis points.

Ten basis points might sound small, but at 164x leverage, that translates to a gain or loss of around 16%.

My take:

🔸 Most of that $573 billion in notional trading volume comes from farming PAPER, and has little to do with genuine trading demand.
🔸 Loss-mining puts users and LPs directly at odds. If the price source gets manipulated, LP funds are the first to take the hit.
🔸 It’s still unclear whether or how the protocol team will fix this.

For those with small amounts of capital:
If you’re looking to speculate on PAPER, treat that money like a lottery-ticket budget. If you’re providing LP liquidity, understand that you’re taking the other side of trades from players using over 100x leverage—and the price-source risk is already spelled out in the documentation. Also, PAPER couldn’t be freely transferred during its initial launch period and was mainly used for staking, so its liquidity is another question mark.

Would you use over 100x leverage to trade a token that you have to lose money to mine?

These are only my personal views and do not constitute investment advice. DYOR.

#Hyperliquid #Papertrade #永续合约 #DeFi

⚠️ It racked up $573 billion in volume in one day—and two wallets used $20 million to break it

Friends, that 1,000x-leverage casino, papertrade, that launched last night just got a sequel—and it’s a bloodbath.

Remember how it launched at 22:00 last night and posted $80 billion in notional trading volume in just one hour (with users collectively losing $4.73 million to farm $PAPER points)? The latest figures this morning: cumulative notional trading volume has hit $573 billion, with $3.3 billion in open interest (ChainCatcher, citing the official website).

Then, just moments ago at 10:42, an on-chain tip came in: two wallets are using around $20 million worth of “blades” to move the price of ETH by 10–20 basis points on Hyperliquid, then opening nine-figure long positions on papertrade to pocket the price difference—the protocol’s mechanics have become an ATM (Newsliquid live feed, X user @newmichwill; Curve founder Michael Egorov reposted with the comment, “This kind of 1,000x leverage really isn’t a good idea”).

Put these three things together, and it’s pretty grim:

1️⃣ Wash traders lose real money to earn points (lose $1 to mint; when LP is below $2 million, the minting rate is 1:100)
2️⃣ Big wallets use $20 million worth of blades to slice straight through the wash traders
3️⃣ You think you’re witnessing the future of finance, but really you’re watching a pig-butchering scam unfold live

Don’t say I’m fearmongering: 1,000x leverage + multisig administrators + a 7-day upgrade timelock—that setup basically means “I make the rules.” I wrote “not recommended” in yesterday’s post; today’s exposed vulnerability only confirms it.

ETH is currently at $2,510.4, BTC at $83,066.6 (checked live on Kraken this round at 10:43), and the broader market is steady—which means this slaughter has nothing to do with the market. The protocol’s design was simply seen through.

💬 Let’s talk in the comments: With a new project offering 1,000x leverage, would you jump in on day one, or wait a month and see if it’s still alive?

$ETH $PAPER #papertrade #BinanceSquare

GM☕️ Last night I tried out papertrade_xyz, and everything—opening positions, closing positions, and staking—required waiting in a queue 😂

Large positions got to the front of the line. My position was small, so I spent almost the whole night waiting at the back and only managed to get a few trades through after midnight. There was zero trading strategy involved—it was basically opening a position and leaving it to fate……

The idea of minting PAPER by losing money, then staking it to share in the platform’s revenue, is pretty clever. But with the queues, you couldn’t open trades even when you wanted to. A bunch of issues cropped up on the very first night, and the advertised zero slippage meant nothing when the queues took so long (I once waited so long to close a position that I got liquidated 😂).

As for returns, early stakers in Paper recouped their costs very quickly—but only if they managed to stake early.

I added it all up: last night I spent about 1000u to get 150k Paper, then gradually queued up to stake it (I didn’t stake the last batch until I got up this morning). The fees I claimed this morning came to around 600u, but staking returns already seem to be dropping sharply.

PAPER is being issued quickly, and a large share is being staked. As more tokens enter the staking pool, the original share of revenue gets diluted. The number of tokens hasn’t gone down, but the share each person receives keeps shrinking.

How much people can earn going forward depends on whether the platform’s net revenue can keep up with the dilution. If revenue mainly comes from people willingly losing money to earn PAPER, I don’t think this model can last long term.

Researching trading was already hard enough—now I have to figure out queues too 🫠.

#Papertrade

Organized into a concise Twitter version:

Papertrade.xyz has reached $118 million in deposits. It offers up to 1,000x leverage and is a synthetic perpetual DEX built on Hyperliquid’s HyperEVM.
There are currently 2,349 open positions, with about $11 billion in open interest and $54 million in backing capital.
Zero slippage, funding fees, spreads, and notional trading fees; losing traders receive PAPER, while profitable traders may face delays withdrawing profits if funds are insufficient.

#Papertrade #Hyperliquid #DEX

Additional detail (could be a second post):
Founded by Jez and Blurr; all 100 pairs of “paper pants” sold out at $2,000 each, bringing in $200,000 in sales. ⚠️ 1,000x leverage carries extremely high risk.

Less than 10 minutes after Papertrade launched, notional trading volume had already reached $14.4 billion.

BTC/ETH contract open interest stands at $3 billion and $2.66 billion, respectively.

Mechanism: For every $1 a user loses, the protocol mints PAPER according to a curve. When the LP balance is below $2 million, 100 PAPER are minted per $1 lost; above $2 million, the minting rate decreases as the balance increases.

#Papertrade #PAPER

Came across Papertrade: synthetic perpetuals on HyperEVM just opened—and the team initially disabled deposits and opened trading. Pre-deposits reportedly reached around $120 million, across more than 10,000 accounts.

The setup is pretty wild: up to around 1,000x leverage, trading against a shared liquidity pool, and no traditional order book. The losing side mints $PAPER. The maximum atomic position per trade is around $10 million, with roughly $1 billion of room for new open interest in each market direction.

A high-leverage testing ground. Right now, whether it’s crowded at launch is more worth watching than the narrative.

#Papertrade #Hyperliquid $HYPE

This really seems top-tier.

You can trade 1000x leveraged contracts.
Over $100 billion in volume on its first day.

If you lose, they give you platform tokens. For liquidity below 2 million, you get 100 tokens for every $1 lost; above 2 million, the token rewards scale linearly. See screenshot.

Hedgers could make a killing: lose money, claim tokens, then stake them to earn a share of the platform’s revenue. Nearly 30 million USDT has already been distributed from yesterday to today. #papertrade