Full-time degen gambler | Ex-Software Engineer | Vibecoding enjoyer | Hyperliquid maxi | prev. @ourbit_official
Joined September 2016
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I called it way back in May when they first released the doc. Tbf we all knew it's gonna happen so can't really call this as an attack. I'm just surprised that they didn't fix it before launch
Anyways, I think @papertrade_xyz won't be ded this quick as long as the team fix this asap. Just look at Hyperliquid, we're still fine after jellyjelly. Plus I believe @izebel_eth isn't gonna fumble this.
xitter.gq/codeboc_eth/status/205…
papertrade got exploited for $1.28M by 0x2025137a136bea7446deba681cbfc7cf1970840e within just 8 hours of being live.
here is the on-chain breakdown of how a clever attacker with more than $13M all time PnL and $14B volume on hyperliquid exploited @papertrade_xyz
how it works: papertrade prices every trade off hyperliquid's ETH price at that exact second. so if you can move hyperliquid's price for a few seconds, papertrade pays you for it.
that's exactly what 0x2025.. did, manipulating hyperliquid's price to move their papertrade positions into profit.
22:01 opens $200M of longs on papertrade
22:01 buys 6,055 ETH on hyperliquid, price goes up $3
22:03 closes the longs → +$168k
22:03 flips to $160M of shorts
22:03 sells 5,260 ETH on hyperliquid, price drops $3
22:04 closes the shorts → +$97k
22:04 flips long again
the exploiter repeats this pattern over and over: long on papertrade, pump the price on hyperliquid, close the longs and open shorts on papertrade, dump the ETH back on hyperliquid, close the shorts.
they won 97% of their trades
296 wins out of 305 trades
typical hold: 98 seconds
total pnl: $1.73M
then it went wrong:
23:13 opens 30 shorts on papertrade, $297M at 2507.35
23:13 sells ~6,600 ETH on hyperliquid, price drops to 2504.4
same move as before. but this time the close never goes through. the short is stuck
02:31 ETH hits 2509.95. all 30 shorts liquidated, -$450k
leaving them with $1.28m of profit.
my guess is the team blocked 0x2025's closes to stop the attack. this is a temporary fix, the underlying oracle of papertrade is still identical, and vulnerable to the exact same manipulation which anyone could re-create from a fresh wallet.
it seems papertrade needs to upgrade their oracle system from using the BBO to possibly using hyperliquid's official oracle system which is less subject to manipulation as it uses a combination of exchange's price feeds.
papertrade address: exchange.papertrade.xyz/port…
hyperliquid address: hyperdash.com/address/0x2025…
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fuck stocks fuck crypto fuck commodities
i'm a full time professional world cup trader now
time to lock tf in
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People coping that “Loracle is just hedging and his spot covered everything” is actually wild.
Idgaf how rich he is. He roundtripped more than half a year of perp profits on this one short.
He was one of the goated traders on Hyperliquid and the best $HYPE signal for a long time. But he overtraded. He once tweeted that he thinks Hyperliquid is still bullish in long term but other altcoins are going to out perform HYPE, that's why he shorted HYPE in the first place.
He could've taken the L, accept that his theory was wrong and closed his short when several bullish signals came in, HIP-4 launch, Circle USDC partnership boosting buybacks, massive CBRS pre-IPO volume, spot ETF huge daily inflows, CFTC perp approval validation etc. But the reality is his ego took over and he refused to accept it.
Loracle’s short getting cooked with -$5.2M unrealized PnL as $HYPE rips +18% in 24h and breaks out to 46.
Sorry Loracle but looks like you're wrong on $HYPE this time.
Hyperliquid to $100 next
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Genuinely insane how this Brick's & Minifigs case escalated from a small claims dispute all the way to potential state police dept level corruption involving the Mormon Church in Utah.
"When you have enough power, you can do whatever you want and you're never on the wrong side."
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