ChainCatcher reported that crypto trader Rune said on X that PaperTrade’s own official documentation had already disclosed a protocol-level risk tied to its pricing mechanism. Based on screenshots of the documentation shared by Rune, an attacker could manipulate prices by using the BBO, or Best Bid and Offer, from the Hyperliquid order book. The issue, as described in the post, touches several areas at once: an unresolved path for price manipulation, contract-level economic design and exposure controls, and operational safeguards including permission management. Rune also reposted comments from community user boblob, who said two wallets were suspected of actively exploiting the issue on PaperTrade. According to boblob, trading of roughly $20 million briefly caused ETH on Hyperliquid to move by about 10 to 20 basis points. boblob added that the protocol’s current problems should be fixed as soon as possible, warning that they could affect PaperTrade’s long-term sustainability if left unresolved.
ChainCatcher reported that crypto trader Rune said on X that PaperTrade’s official documentation had disclosed a protocol-level 「flaw」 risk in its pricing mechanism.
According to screenshots of the documentation shared by Rune, an attacker could manipulate prices by using the BBO, or Best Bid and Offer, from the Hyperliquid order book. Rune said the risk involves an unresolved route for price manipulation, contract economic design and exposure controls, as well as operational protections and permission management.
Rune also reposted a post from community user boblob. In that post, boblob said two wallets were suspected of actively carrying out an 「attack」 on the PaperTrade platform. Trades totaling about $20 million briefly caused ETH on Hyperliquid to see a small move of around 10 to 20 basis points.
boblob added that the obvious issues in the current PaperTrade protocol need to be fixed quickly, or they could affect the protocol’s long-term sustainability.
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