Trader Rune flags PaperTrade pricing flaw risk, says suspected exploit caused small ETH move on Hyperliquid
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.
