Papertrade Loses 93.7% of Open Interest After Launch Weekend

Papertrade’s open interest fell 93.7% from $11 billion to $693 million over roughly 24 hours, marking a sharp unwind at the newly launched perpetuals decentralized exchange built on HyperEVM.

The platform’s total value locked dropped from $118 million to $70 million over the same period, a decline of $48 million. About $9.17 million backed the remaining outstanding positions.

Papertrade’s official account addressed complaints about transaction prioritization and said overnight attempts to manipulate Bitcoin (BTC) and Ether (ETH) reference prices were not an oversight in the mechanism design. The platform’s official account said launch activity used a priority system based on transaction type and notional value, adding that “it was never possible to allow small notional to have the same priority as large notional.”

Papertrade offers up to 1,000x leverage, zero slippage and no funding costs. Its synthetic swaps use Hyperliquid’s BBO mid-price as an oracle, while positions trade against the protocol’s liquidity pool rather than Hyperliquid’s own perpetual contracts.