PAPER TRADE PROTOCOL ACTIVELY EXPLOITED ON HYPERLIQUID

Summary from the TLDR Crypto newsletter

Two wallets are exploiting Paper Trade by running $20M clips on Hyperliquid to shift ETH prices 10-20bps, then opening nine-figure paper longs that capture the manufactured move at no real cost. The attack exposes a structural gap between real-market price impact and paper trade settlement that the protocol must close to remain viable.