Hyperliquid’s HyperDrive DeFi Loses $773K in Account Compromise, Funds Bridged to BNB Chain and Ethereum
HyperDrive DeFi protocol has suffered a $773,000 exploit affecting two accounts in its Treasury Bill market, with stolen funds break up between BNB Chain and Ethereum networks via bridge transfers.
The assault compromised positions utilizing Theo Network’s thBILL as collateral, prompting speedy suspension of all cash markets and withdrawals throughout the platform.
Second Major Exploit Strikes Hyperliquid Ecosystem in 72 Hours
CertiK’s evaluation revealed the attacker exploited an arbitrary name vulnerability in the router contract, stealing 672,934 USDT0 and 110,244 thBILL tokens.
The stolen funds have been bridged by way of the deBridge protocol, with roughly $494,000 moved to Ethereum and $279,000 to BNB Chain earlier than being consolidated at a single handle.
The incident marks the second main safety breach concentrating on Hyperliquid’s ecosystem inside three days, following the $3.6 million HyperVault rug pull, in which builders disappeared after deleting all their social media accounts.
The speedy succession of assaults raises issues in regards to the safety posture of tasks constructing on the decentralized alternate platform.
HyperDrive officers confirmed the exploit was restricted to the Primary USDT0 Market and Treasury USDT Market, with no impression on the protocol’s native HYPED token.
The staff has engaged safety and forensics specialists whereas exploring compensation plans for affected customers.
Router Vulnerability Enables Systematic Fund Extraction
The attacker repeatedly exploited a important flaw in HyperDrive’s router contract that allowed arbitrary perform calls, thereby bypassing regular safety restrictions and draining person funds.
CertiK’s forensic evaluation recognized the particular vulnerability that enabled the systematic extraction of funds from the thBILL Treasury Market.
The exploit focused accounts holding positions backed by Theo Network’s Treasury Bill tokens, which function collateral in HyperDrive’s lending markets.
Notably, safety specialists have speculated that the attacker’s methodical method suggests a high stage of data of the protocol’s inside mechanics and good contract structure.
They famous the stolen funds have been shortly moved off-chain via deBridge, a cross-chain protocol that facilitates asset transfers between totally different blockchain networks.
HyperDrive’s staff reached out to the exploiter on-chain, providing a ten% white-hat bounty in alternate for returning the remaining funds.
The protocol suspended all market operations and withdrawal capabilities to stop extra malicious exercise whereas investigating the complete scope of the compromise.
The incident prompted broader safety evaluations throughout Hyperliquid’s ecosystem, as a number of tasks constructing on the platform face elevated scrutiny following the current wave of exploits and rug pulls.
Hyperliquid Ecosystem Under Siege From Multiple Threats
The HyperDrive exploit compounds strain on Hyperliquid following the devastating HyperVault rug pull just 48 hours earlier, the place builders vanished with $3.6 million after depositing stolen ETH into Tornado Cash.
The HyperVault rip-off ignored early neighborhood warnings about fabricated audit claims from revered corporations.
Previous safety incidents embrace the March JELLY token manipulation that value Hyperliquid’s vault $13.5 million via synthetic worth pumping and leveraged place exploitation.
The “ETH 50x Big Guy” dealer equally netted $1.8 million revenue whereas inflicting $4 million in vault losses.
These assaults happen as ASTER DEX challenges Hyperliquid’s market dominance, processing over $13 billion in day by day perpetual futures quantity in contrast to Hyperliquid’s decreased exercise.
Additionally, ASTER has recently integrated Trust Wallet, offering 100 million customers with direct entry to perpetual contracts.
Arthur Hayes beforehand exited his entire HYPE position for $823,000 revenue, citing large token unlocks price $11.9 billion beginning November 29.
He just lately polled his followers about re-entering HYPE after the token dropped 23% in every week to $35.50.
Despite safety challenges, Hyperliquid launched its native USDH stablecoin on September 24, producing $2.2 million in early buying and selling quantity.
Native Markets secured the stablecoin issuance mandate after defeating established gamers, together with Paxos and Ethena Labs, via aggressive governance voting.
The platform has additionally activated HYPE/USDH spot buying and selling following Native Markets’ three-year dedication to stake 200,000 HYPE tokens.
Following the Hayes whale transfer to dump Hayes, citing issues with Hype tokenomics provide, the DBA asset manager proposed cutting HYPE’s total supply by 45% to enhance tokenomics. However, critics warned that this might restrict future progress flexibility.
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