Trader nets $1.28 million on Papertrade exchange by moving Hyperliquid ETH prices

Papertrade exchange — A crypto trader profited $1.28 million on the new 1,000x leverage exchange Papertrade by executing a trade that moved the price of Ethereum on the Hyperliquid perpetual futures platform.

The trader’s wallet reportedly opened a position that successfully manipulated the reference price used by Papertrade, which sources its data from Hyperliquid. This allowed the trader to capture a massive gain on the high-leverage platform.

However, the same wallet later suffered significant losses. On Saturday night, more than 30 short positions held by the trader were liquidated, resulting in a loss of approximately $450,000.

The positions that were liquidated had remained open for over three hours before the event occurred. The incident highlights the extreme volatility and risks associated with trading on high-leverage platforms that use external price feeds.