Rune Flags PaperTrade BBO Price-Manipulation Risk in $20M Trades

Crypto trader Rune flagged a protocol-level pricing vulnerability in PaperTrade’s documentation, alleging that attackers could manipulate Hyperliquid’s best bid and offer to influence Ether prices.

Rune said the documentation identifies unresolved risks involving price-manipulation paths, contract economics, exposure controls, operational defenses and permission management.

Community user boblob alleged that two wallets actively exploited the issue through roughly $20 million in trades on PaperTrade. The activity briefly caused Ether prices on Hyperliquid to move by about 10 to 20 basis points, according to the claim.

Boblob said the protocol’s problems require prompt repair and could affect its long-term sustainability.