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Promote with Leviathan NewsHypervault Finance, a yield farming and “unmanaged” auto-compounding vault protocol built on the Hyperliquid ecosystem, experienced a sudden $3.6 million outflow in what blockchain security firm PeckShield labeled an “abnormal withdrawal.” On-chain data shows assets were first bridged from the Hyperliquid network to Ethereum, swapped into ETH, and then funneled in batches—around 752 ETH—through the privacy mixer Tornado Cash, a pattern frequently associated with rug pulls and laundering of illicit funds. The drained assets reportedly included a basket of tokens such as UPUMP, USDC, USOL, kHYPE, UETH, UBTC, and various stablecoins, with Hypervault’s total value locked sitting near $5.9 million before the incident. Immediately after the withdrawals, Hypervault’s website, documentation, and social channels (including its X/Twitter and Discord) went offline with no public explanation from the team, leaving users unable to access official communications or the app interface. The disappearance of the project’s online presence, combined with the structured bridging of funds to Ethereum and subsequent deposits into Tornado Cash, has led security analysts and DeFi observers to characterize the event as a likely rug pull or exit scam, rather than a typical external exploit. While Hypervault was part of the broader Hyperliquid ecosystem, reports emphasize that Hyperliquid itself remains operational; nonetheless, the incident has renewed scrutiny on third‑party protocols building atop popular DeFi infrastructures and on the adequacy of auditing and due diligence around high-yield vault products.
AI-generated background, compiled from web sources — not editorial content.
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Coindesk ·
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𝕏/@Uniswap ·
Circle ·
𝕏/@PeckShieldAlert ·
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