Trader Moves $231 Million In Ether On Hyperliquid, Exposing Pricing Risk

A wallet traded about $231 million in Ether (ETH) on Hyperliquid on Oct. 10 while holding large positions on Papertrade, exposing a pricing risk in the newly launched platform’s 1,000x-leverage markets.

The wallet bought about 6,060 ETH between 6:01 and 6:02 p.m. ET (22:01–22:02 UTC), moving Hyperliquid’s quoted price by roughly $3, or 0.12%. At 1,000x leverage, a 0.1% price move can equal the full margin on a position.

Papertrade records showed about $1.28 million in profit linked to the wallet, alongside $3.18 billion in reported trading volume. The wallet deposited about $1.2 million and withdrew roughly $2.48 million.

Papertrade identified the activity as an attempt to influence the Bitcoin (BTC) and Ether prices used for its synthetic perpetuals through Hyperliquid’s best-bid-and-offer midpoint. The platform uses that midpoint to settle positions against a shared liquidity pool rather than matching each trade directly with another participant.

Papertrade launched on HyperEVM at 10 a.m. ET (14:00 UTC) Oct. 10. It said it has begun tightening open-interest caps both on-chain and through transaction relayers after the activity.