PaperTrade has officially confirmed reports regarding attempts to manipulate the best-bid/offer (BBO) data on the Hyperliquid platform. These activities involved efforts to alter ETH quotes, which subsequently affected the reference prices utilized by PaperTrade for executing BTC and ETH trades.
In response to the incident, PaperTrade has implemented stricter controls. The platform has tightened its open-interest limits both on-chain and through its relayers. While the situation raises questions about the platform's reliance on external price feeds, there is no evidence of a security breach within the native Hyperliquid system.
Market participants are now observing how these security adjustments will impact the platform's stability. The upcoming launch of the PaperTrade token and its performance in the market are expected to serve as primary indicators of investor confidence following these events.
