Papertrade, a synthetic perpetuals exchange on HyperEVM offering up to 1000x leverage, is facing an unconfirmed oracle manipulation allegation. The core Martingaler LP liquidity pool, which pays out winning traders, held only approximately $3.15 million shortly after launch, raising concerns about insufficient cushion for the platform’s model. Launched around October 10, 2026, the platform reached $14.4 billion in notional volume within ten minutes with over $137 million in pre-deposits. Net realized trader losses are estimated between $18 million and $28 million, while PAPER stakers received between $10 million and $12.6 million in USDC rewards. The allegation centers on Papertrade’s use of Hyperliquid’s BBO mid-price as its sole oracle source: a single price feed for a high-leverage platform creates potential vulnerability to manipulation.
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