Attacker Burns $3M to Drain $5M From Hyperliquid HLP Vault
A coordinated strike against decentralized derivatives platform Hyperliquid resulted in nearly $5 million in losses from its Hyperliquidity Provider (HLP) vault, according to on-chain reports. The attacker is said to have burned roughly $3 million during the sequence of transactions used to extract funds, leaving the protocol and liquidity providers with a substantial shortfall.
The incident underscores continued risks in DeFi derivatives and vault structures, where complex interactions can be manipulated at scale. On-chain analysis and any official statement from Hyperliquid will be key to understanding the exploit vector and recovery prospects. Market and liquidity impacts could pressure the HYPE token and prompt closer scrutiny from users and auditors alike as stakeholders await more details.