Papertrade hacked for $ 1.28M
A quant trader with $13M+ all-time PnL manipulated Papertrade’s oracle by executing massive ETH buys/sells on Hyperliquid to briefly move its price, profiting $1.73M gross on timed long/short flips before a final $450k liquidation left $1.28M net.
The attack involved 305 trades (296 wins) over 8 hours, with average 98-second holds: open $200M+ Papertrade positions, manipulate Hyperliquid price within seconds, close for profit, and reverse direction repeatedly.
Papertrade prices directly off Hyperliquid’s ETH spot at the exact second, making it vulnerable to short-term manipulation; the post suggests the team blocked some closes and recommends upgrading to Hyperliquid’s less manipulable official multi-feed oracle.
@EthSecurity1