Analysis: Papertrade did not adopt Hyperliquid’s official oracle pricing mechanism, enabling a trader to manipulate the system and earn $1.28 million in profits.

According to Butler’s monitoring, Papertrade was exploited by an address to earn around $1.28 million in profits just roughly 8 hours after its launch. The same trader has accumulated over $13 million in historical profits on Hyperliquid, with a trading volume of $14 billion. Since Papertrade prices its trades based on Hyperliquid’s real-time ETH price, the attacker repeatedly opened large long and short positions on Papertrade while trading ETH on Hyperliquid, briefly pushing prices up or down

@tonmelonfest