Is a Safety Emergency Approaching Hyperliquid? Main Network Breached
The Hyperliquid blockchain, rapidly emerging in the DeFi (DeFi) space, is encountering an escalating protection dilemma following a series of significant events that have raised concerns about the integrity of its financial markets.
On September 27, Hyperdrive, a premier yield protocol associated with Hyperliquid, had to halt all markets after an exploit was confirmed, resulting in the loss of approximately $700,000 from two affected Treasury Trading market accounts.
What Led to the Hyperdrive Hack?
Positions on two accounts within the thBILL trading market have been compromised.
Hyperdrive has halted all financial markets as a preventive measure while we conduct a thorough investigation.
This situation does not involve $HYPED.
— Hyperdrive (@hyperdrivedefi) September 27, 2025
The developers have linked the safety breach to an issue in operator permissions: users had set Hyperdrive’s Router as an operator, inadvertently giving it broad access to invoke any whitelisted contract. Malicious actors exploited this gap to manipulate positions and seize funds.
Hyperdrive maintained that the thBILL asset and HYPED governance crypto token were not directly affected, yet the fallout extended beyond merely the lost funds.
This incident represented the second significant attack within a span of 48 hours on Hyperliquid’s DeFi framework. The previous day, HyperVault, another yield network, experienced a $3.6M drain which was funneled through Tornado Cash before its website went down and its social media accounts were erased, indicating a potential exit scam.
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Heightened Hack Anxiety on Hyperliquid: Is the Protocol Under Attack?
The swift succession of these incidents has intensified concerns regarding Hyperliquid’s robustness. Community sentiment has transitioned from admiring Hyperliquid’s speed and composability to apprehension that the platform may be drawing the attention of malicious actors.
Safety experts suggest that the issues might stem from more than just isolated platform errors. Hyperliquid, debuted last year with a $1.6Bn HYPE airdrop, is built on a high-capacity chain operating over Arbitrum.
Its architecture, which emphasizes extremely rapid execution, has long raised alarms about possible centralization risks. The protocol relies on only four validators, a setup critics argue could lead to significant vulnerabilities to coordinated attacks.
These concerns gained momentum in December 2024 when distributed database investigators connected wallets from North Korea’s Lazarus Group to suspicious transactions on Hyperliquid.
MetaMask’s Taylor Monahan cautioned at that moment that DPRK hackers were “testing the waters” of the chain for potential exploits.
While Hyperliquid Labs dismissed these assertions, the HYPE crypto token plummeted over 20% within a single day as investors reacted.
(Source – HYPE USDT, TradingView)
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The recent breaches seem to have rekindled those anxieties. On-chain data indicate increasing net outflows from Hyperliquid protocols since Friday, with over $200M in USDC withdrawn within a 24-hour timeframe.
The HYPE token, which achieved a trading market cap exceeding $11Bn earlier this year, has witnessed significant percentage drops in weekend trading.
The reputational damage extends further than just fluctuating prices. Institutions considering ties with Hyperliquid are now assessing whether its nascent ecosystem can uphold the safety standards necessary for expansion.
The fact that both Hyperdrive and HyperVault targeted yield-seeking retail investors only heightens fears that Hyperliquid has become a prime target for opportunistic attackers.
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The post Is a Protection Crisis Heading For Hyperliquid? Flagship Network Hacked appeared first on 99Bitcoins.
