# Papertrade’s Hyperliquid Price Reference Raises Manipulation Risk

By Simon Yoon

Canonical URL: https://www.tokenpost.com/news/technology/29706
Published: 2026-10-11T04:55:46.000Z
Updated: 2026-10-11T04:55:46.000Z
Section: Technology

> Two wallets allegedly used about $20 million in Hyperliquid orders to move Ether prices while holding large Papertrade long positions.

On-chain analyst Boblob alleged that two wallets used Hyperliquid price swings to profit from large Papertrade positions, potentially putting liquidity-provider funds at risk.

Boblob alleged that the wallets placed about $20 million in orders on Hyperliquid, moving Ether prices by 10 to 20 basis points. At the same time, they reportedly opened Papertrade long positions with a combined notional value of hundreds of millions of dollars.

The strategy allegedly relied on a pricing gap between the two platforms. Papertrade uses Hyperliquid prices as a settlement reference, which may allow traders to influence the external price and capture value from the protocol’s liquidity providers.

The alleged attack and the size of any losses remain unconfirmed. Similar price-manipulation risks have previously affected protocols that use prices from multiple exchanges, including GMX.

The risk may increase as trading volume grows, particularly if large positions can be settled against a price that is moved in a separate market.