W3BStation
Markets
BTC $96,420 +2.34% ETH $3,280 +1.82% SOL $185.40 -0.92% BNB $642.50 +0.45% XRP $2.18 +3.12% DOGE $0.082 -1.50% ADA $1.05 +0.80% AVAX $42.10 +1.15%
BTC $96,420 +2.34% ETH $3,280 +1.82% SOL $185.40 -0.92% BNB $642.50 +0.45% XRP $2.18 +3.12% DOGE $0.082 -1.50% ADA $1.05 +0.80% AVAX $42.10 +1.15%
10/12/2026

Papertrade Trader Nets $1.28M by Exploiting Hyperliquid ETH Pricing

What happened: A trader exploited the pricing mechanism on the newly launched Papertrade exchange to net approximately $1.

Papertrade Trader Nets $1.28M by Exploiting Hyperliquid ETH Pricing

What happened: A trader exploited the pricing mechanism on the newly launched Papertrade exchange to net approximately $1.28 million within hours of its October 11 debut. By manipulating ETH prices on Hyperliquid, the trader executed 305 trades—296 of them profitable—before losing $450,000 on a series of high-leverage shorts that were liquidated. Papertrade, which offers up to 1,000x leverage and a $5 million liquidity pool, responded by tightening open-interest caps after the exploit.

Why it matters: The incident highlights persistent vulnerabilities in DeFi platform design, particularly when price feeds are directly linked to external order books. Papertrade's own documentation reportedly warned of such risks pre-launch, raising questions about platform accountability. The rapid response to cap trading limits signals a reactive rather than proactive approach to risk management in high-leverage environments.

Source: The Block