ProMint(@ProMint_X):The Papertrade team blew it @blurr, dev of @papertrade_xyz: "Our oracle is incredibly decentralized. There's no risk that i can screw you. I very much designed it in a way so you can see exactly how it works, its very public and there's no risk" Like I said, zero protection against price manipulation or price deviations Using Hyperliquid's BBO mid as an oracle was a terrible idea, especially when the whole community warned them about this exact outcome Which is why Papertrade lost $1.2M overnight And yeah, on one of the trades, the close order failed to execute (presumably because the team manually blocked it), causing the position to get liquidated at a $450k loss Blocking orders was just a temporary band-aid. Papertrade's oracle remains unchanged (it still relies on BBO) and stays vulnerable to anyone with enough capital to move the market So far, there haven't been any announcements confirming the issue is fixed or that user funds are safe

2026.10.11 10:54

The Papertrade team blew it @blurr, dev of @papertrade_xyz: "Our oracle is incredibly decentralized. There's no risk that i can screw you. I very much designed it in a way so you can see exactly how it works, its very public and there's no risk" Like I said, zero protection against price manipulation or price deviations Using Hyperliquid's BBO mid as an oracle was a terrible idea, especially when the whole community warned them about this exact outcome Which is why Papertrade lost $1.2M overnight And yeah, on one of the trades, the close order failed to execute (presumably because the team manually blocked it), causing the position to get liquidated at a $450k loss Blocking orders was just a temporary band-aid. Papertrade's oracle remains unchanged (it still relies on BBO) and stays vulnerable to anyone with enough capital to move the market So far, there haven't been any announcements confirming the issue is fixed or that user funds are safe

ProMint@ProMint_X

2026.10.10 15:03

The bottleneck of Papertrade: There’s no protection against price manipulation or price deviations CEXs use a Fair Price / Mark Price calculated from external exchange index prices and TWAP This is done specifically so a single large player can't wick the order book for a second and liquidate users If the order book on Hyperliquid thins out at any point, an attacker could move the Bid/Ask on HL with a large order, forcing the BBO precompile to return a distorted price The attacker could artificially widen the spread on HL, open a 1000× leverage position on Papertrade at the distorted mid price, and then let the order book normalize to close the position for a massive profit at the expense of the @papertrade_xyz LP pool Worst case scenario, the team can freeze the market, locking in the last BBO price to settle existing positions

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