Papertrade loses ~$1.28M to BBO oracle manipulation 8 hours after HyperEVM launch

According to GoPlus Security, the attacker opened oversized synthetic longs and shorts on Papertrade, then bought and sold ETH on Hyperliquid to briefly displace its best-bid/ask mid, which Papertrade used directly for execution and PnL. The Martingaler LP paid the resulting profit. Papertrade's docs reportedly had no max-deviation cap, TWAP, lookback or independent reference price. A ~$10M per-position cap was bypassed via roughly 30 positions of ~$9.9M, and ~$3.14M in LP capital backed up to 1,000x leverage.

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