DeFi ✓LaunchBar Newsroom 📅 October 12, 2026 at 01:26 AM ⏱ 2 min

1,000x DeFi Exploit: Trader Pulls $1.28M From Papertrade Launch

A wallet reportedly made $1.28 million within hours of Papertrade’s launch by moving Hyperliquid’s ETH price feed while holding massive 1,000x-leveraged positions. The new HyperEVM perpetuals venue has now tightened open-interest limits.

Wallet 0x2025...840e bought roughly 6,060 ETH, lifting ETH about 0.12%.
At 1,000x leverage, a 0.1% move can erase an entire position’s margin.
The trader later lost $450,000 after 30 short positions were liquidated.

LaunchBar takeaway: Papertrade exposed the lethal weakness of thin, oracle-dependent perp venues—tiny spot moves can become seven-figure payouts. Traders should treat loose launch caps and shared-liquidity models as red flags until liquidity, risk controls and price feeds mature.

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