Papertrade Faces Price-Manipulation Allegation From Two Addresses

A user identified as Boblob alleged Oct. 11 that two wallet addresses were exploiting Papertrade through price manipulation and said the activity exposed a potential vulnerability in the protocol. The addresses allegedly executed trades of about $20 million per transaction on Hyperliquid, moving Ether (ETH) prices by roughly 10 to 20 basis points. They then opened long positions on Papertrade with nominal values reaching hundreds of millions of dollars. The allegation describes a potential weakness in Papertrade’s pricing or risk controls: relatively small price movements on one venue could affect much larger positions on the protocol.

Source: TokenPost