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Security Incident · ETH Ecosystem

Papertrade Price Manipulation: $1.28M Reported Loss

·Source-attributed incident record

Papertrade, a synthetic perpetuals platform with up to 1000x leverage built on Hyperliquid’s HyperEVM, suffered a ~$1.28 million loss about 8 hours after its Oct.

Reported loss
$ 1,280,000
Attack category
Price Manipulation

Incident Overview

10, 2026 launch. A wallet moved ETH prices on Hyperliquid (via large buys/sells) while holding highly leveraged positions on Papertrade that settled against the manipulated BBO midpoint, extracting profits from the platform’s shared USDC liquidity pool. Papertrade attributed it to overly permissive open-interest limits at launch and tightened them.

Sources & References

This record presents information attributed to the linked sources. Incident dates describe the original event, not a new report. Reported loss figures reflect the source record and are not current market valuations.