ETH Swings on Hyperliquid After $20 Million in Trades

Two wallets suspected of exploiting a disclosed best-bid-and-offer risk at papertrade triggered Ether (ETH) volatility on Hyperliquid, with about $20 million in trades moving the price by 10 to 20 basis points.

Community user boblob alleged that the wallets had launched an active attack against papertrade and urged the protocol to fix the issue quickly. Crypto trader Rune highlighted the allegation while discussing papertrade’s disclosed risk factors.

papertrade’s documentation identifies potential manipulation of Hyperliquid’s order book BBO — the best available bid and offer — as a primary protocol-level risk. It also flags contract economics, exposure controls, operational safeguards and permission management.

Boblob said unresolved problems could affect papertrade’s long-term sustainability.