Trader Exploits Hyperliquid ETH Prices for $1.28M Profit on Papertrade
A trader reportedly manipulated ETH prices on Hyperliquid to secure a $1.28M profit on the new exchange Papertrade.
A trader reportedly manipulated ETH prices on Hyperliquid to secure a $1.28M profit on the new exchange Papertrade. Ethereum (ETH) is trading at $2,553.82, down 0.1% since this brief published. This is an original Token Times brief synthesising 2 outlets (The Block, Crypto.news), plus live market data, as of Mon, 12 Oct 2026 11:00:01 UTC.
This incident highlights potential vulnerabilities in decentralized exchanges and the risks of price manipulation, which could undermine trust in emerging trading platforms.
- Trader made $1.28M profit on Papertrade using $20M ETH trades on Hyperliquid.
- Same wallet later lost $450K on 30 liquidated short positions.
- Hyperliquid's TVL is $348.46M, down 0.7% in the past week.
- Incident raises concerns about market manipulation on decentralized exchanges.
The Block and Crypto.news both report that a trader exploited ETH price movements on Hyperliquid to secure a $1.28 million profit on Papertrade. They agree that the same wallet was later involved in losing $450,000 from 30 liquidated short positions. However, Crypto.news emphasizes allegations of price manipulation, while The Block focuses on the sequence of trades and their outcomes. The verified Hyperliquid TVL is $348.46M, according to DeFiLlama, which is consistent with the reported decline.
A trader reportedly made a $1.28 million profit on the new exchange Papertrade by exploiting 
Ethereum price movements on the decentralized platform 
Hyperliquid. The trades involved $20 million worth of ETH, according to Crypto.news.
The incident has raised concerns about potential price manipulation on decentralized exchanges. The trader reportedly used large ETH transactions to influence prices on Hyperliquid, which were then used to secure profitable positions on Papertrade.
The same wallet that made the $1.28 million profit later suffered a loss of $450,000 when 30 short positions were liquidated on Saturday night after being open for more than three hours, as reported by The Block.
Hyperliquid's total value locked (TVL) is currently $348.46 million, according to DeFiLlama, marking a 0.7% decline over the past week. This incident comes amid a relatively stable overall crypto market, with the total market cap at $2.9 trillion and 
Bitcoin up 0.61% in the last 24 hours.
The Fear & Greed Index stands at 69, indicating a state of 'Greed' among investors. Ethereum is trading at $2,556.95, up 2.26% in the last 24 hours but down 6.02% over the week. Hyperliquid's native token, HYPE, is also up 2.35% in the last 24 hours but down 6.87% over the week.
Since this brief published about 13 hours ago, Ethereum (ETH) has moved from $2,556.95 to $2,553.82 — -0.12%.
The chart plots ETH's price: grey is the move before this brief published, the vertical dashed line marks the moment it published, the horizontal dashed line is the price then, and the coloured area is the move since — from Token Times's market data (daily resolution). It shows what happened after the news, not that the news caused it; many factors move prices. Not financial advice.
At today's peer-to-peer rate, 1 ETH ≈ ₹263,043.46 (about $2,553.82), up 2.2% over 24 hours. The rupee itself trades about 6.2% above the official rate on the P2P market, so a Indian buyer's effective cost differs from the headline dollar price.
Live market data
Current prices for the assets in this story — live, source-stamped, updated every 15 minutes.
Figures and sectors in this story, checked live against on-chain aggregators · October 12, 2026.
Token Times reads these figures directly from on-chain aggregators (DeFiLlama, mempool.space) at build time — independent of what any outlet reported. Sector totals aggregate every protocol DeFiLlama tracks in that category. Values are live and will change.
Trader Exploits Hyperliquid ETH Prices for $1.28M Profit on — questions & answers
What is the total value locked in Hyperliquid?
Hyperliquid's TVL is $348.46 million, down 0.7% in the past week.
How much profit did the trader make on Papertrade?
The trader reportedly made a $1.28 million profit on Papertrade.
What happened to the trader's short positions?
The trader's 30 short positions were liquidated, resulting in a $450,000 loss.
How much is 1 Ethereum worth in rupee today?
About ₹263,043.46 at the live peer-to-peer (P2P) USDT rate, which is what Indians typically trade at — equivalent to roughly $2,553.82. The rupee price moves with both ETH's US-dollar price and the USDT/INR rate; use our Ethereum in rupee page for any amount.
Has Ethereum's price moved since this brief was published?
ETH is down 0.12% since this brief first published — trading at $2,553.82 now versus $2,556.95 at publication. Token Times re-checks this figure against CoinGecko and Binance every 15 minutes.
Which outlets reported this story?
This is an original Token Times brief that synthesises reporting from The Block, Crypto.news, with the key figures cross-checked for agreement across them. It is not a copy of any one article — follow the source links above for the original reporting.
Original summary — not financial advice. This is an original Token Times brief that summarises a development reported elsewhere and adds live market data for context; it is not the original article and reproduces no part of it. Follow the source link above for full details. Crypto is volatile and high-risk — always do your own research.