Hyperliquid’s BBO Is Facing a Stress Test .@papertrade_xyz has responded to concerns over price manipulation involving BTC/ETH on Hyperliquid’s BBO, pointing to loose early-stage position limits rather than flaws in its six-month-designed mechanism Key points: • @HyperliquidX BBO is the battleground. Attempts to manipulate BTC/ETH exposed how trading mechanisms behave under real-world pressure • Launch trade-offs matter. Papertrade says loose position limits were initially used to handle congestion and maintain a smoother user experience • Controls are tightening. As congestion eases, Papertrade has started reducing position limits both on-chain and at the relay level • Manipulation has an economic cost. The goal is to make attacks unprofitable, with potential losses outweighing expected gains Hyperliquid’s role goes beyond providing trading liquidity. Its BBO environment is also a real-world test for third-party trading protocols building on top of it The key question is whether Papertrade can tighten its controls without sacrificing the fair-launch experience. Better execution infrastructure means little if its incentives can be exploited