Rune Points Out BBO Price Manipulation Risk in PaperTrade

Crypto trader Rune stated on the X platform that the official documentation of PaperTrade reveals vulnerabilities in the pricing mechanism at the protocol level. Screenshots of the documentation show that attackers could exploit the BBO (Best Bid and Offer) from the Hyperliquid order book to manipulate prices. The risks involve unresolved price manipulation pathways, contract economic mechanisms, risk exposure control, as well as operational protective measures and permission management mechanisms. Rune also retweeted a post from community user boblob, disclosing that two wallets are suspected of actively attacking the PaperTrade platform, causing a slight fluctuation of about 10-20 basis points in ETH prices on the Hyperliquid platform through trades amounting to approximately $20 million. Boblob further added that there are obvious issues with the current PaperTrade protocol that need to be fixed promptly, or it may affect the long-term sustainability of the protocol.

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