Papertrade Accused of Pricing Exploit Involving Hyperliquid Quotes
A trading platform called Papertrade, built on HyperEVM, has been accused of being vulnerable to a pricing scheme involving two wallets and roughly $20 million in Hyperliquid orders. An X user claimed those wallets shifted ETH quotes by 10–20 basis points while holding much larger long positions on Papertrade, which reportedly sets execution prices using the midpoint of Hyperliquid's top buy and sell quotes. A trader noted that Papertrade's own documentation identifies manipulation of those quotes as an unresolved risk.
Papertrade is a perpetual trading platform built on HyperEVM. Its reported execution price uses the average of Hyperliquid’s highest buy quote and lowest sell quote. An X user, @Dr_bobo54, alleged two wallets placed about $20 million in Hyperliquid orders, shifting ETH quotes by 10–20 basis points while holding larger long exposure on Papertrade. Trader Rune noted Papertrade’s documentation lists manipulation of those quotes as a risk it has not resolved.
The claims have not been independently verified, and Papertrade has not confirmed losses. The reported figures describe order size and ETH quote movement, not the total value of Papertrade positions or any resulting profit or loss.
If confirmed, this episode could affect traders using Papertrade and similar HyperEVM venues, who may face unexpected execution outcomes when external quotes are used. It may also prompt users of quote-linked platforms to seek clearer risk disclosures and monitoring. Broader confidence in decentralized derivatives could be tested, though the allegations remain unverified and no losses are confirmed.