In the last 12 hours, the total network saw $526 million in liquidations, with Ethereum accounting for $315 million.

Coldcard announced it is investigating a phishing link incident involving its official X account. The related post has been deleted, and the company is reminding users not to access or interact with the link. The account has used offline two-factor authentication (2FA) since 2017 and strictly restricts access permissions. Coldcard has contacted the X platform and is reviewing all account access records; verified updates will be released via its official account later.

Crypto analyst Darkfost posted on X that Bitcoin has entered a phase of sharply intensifying selling pressure. Notably, this refers to potential selling pressure, not actual realized selling activity. The “Seller Exhaustion Indicator” combines profitable supply and volatility (returns) to distinguish between market risk and stable phases, serving as a valuable metric for short-term market analysis. As the recent rally pushed Bitcoin’s price above $85,000, the indicator signals the market is entering a stage where selling pressure could escalate. The indicator’s shift has been quite sudden, especially evident among short-term holders. Since volatility tends to weaken over time, excessive focus on specific numerical values is unwarranted, though the overall trend is clear. Currently, the indicator has hit a critical level matching the one that signaled a local top in this cycle. Moving forward, it remains to be seen whether market demand can improve to limit potential pullbacks; if volatility contracts accordingly, that would also help the indicator return to normal.

According to Butler’s monitoring, Papertrade was exploited by an address to earn around $1.28 million in profits just roughly 8 hours after its launch. The same trader has accumulated over $13 million in historical profits on Hyperliquid, with a trading volume of $14 billion. Since Papertrade prices its trades based on Hyperliquid’s real-time ETH price, the attacker repeatedly opened large long and short positions on Papertrade while trading ETH on Hyperliquid, briefly pushing prices up or down before closing positions for gains. Data shows the trader executed a total of 305 trades, 296 of which were profitable, giving a win rate of approximately 97%. The average holding time was just 98 seconds, with cumulative trading profits peaking at $1.73 million. However, the attacker later opened 30 short positions on Papertrade at $2507.35, with a notional value of around $297 million, and sold roughly 6,600 ETH on Hyperliquid to drive the price down to $2504.4, but this attempt to close the positions failed. Afterward, ETH’s price rose to $2509.95, triggering full liquidation of the 30 short positions, resulting in a loss of roughly $450,000. The attacker ultimately netted approximately $1.28 million in profits. The Papertrade team may have curbed the attack by blocking the attacker’s position closures, but this is only speculation and has not been confirmed. Analysts noted that if the platform continues to directly use Hyperliquid’s BBO (Best Bid Offer) as its pricing basis, underlying manipulation risks will remain. They recommend adopting Hyperliquid’s official oracle price, which aggregates quotes from multiple trading platforms, to reduce risks from manipulation of a single order book.

According to TradingBeats' monitoring, since Papertrade opened trading at 22:00 on October 10, a total of 7,962 addresses have opened positions, with 5,836 of them having used 1000x leverage, accounting for roughly 73.3%. These addresses cumulatively opened 61,222 1000x leveraged positions, and the high leverage risk has materialized rapidly. Of these, 4,395 addresses have experienced at least one liquidation of a 1000x position, making up 75.3% of all addresses that used 1000x leverage; a total of 12,657 1000x leveraged positions were liquidated, resulting in isolated margin losses of approximately $20.0771 million, including around $8.0006 million in BTC positions and $12.0764 million in ETH positions. Over the same period, 4,861 addresses across the entire platform had positions liquidated, with a total of 14,158 liquidated positions and isolated margin losses of about $23.1162 million. 1000x positions accounted for roughly 89.4% of total liquidation counts and 86.9% of total liquidation margin losses. The median holding time of liquidated 1000x positions from opening to liquidation was just 7 minutes and 35 seconds. The official noted that a 1000x leveraged position may trigger liquidation and lead to the loss of the entire isolated margin if a reverse price movement of approximately 0.052% occurs.

According to YuEmber monitoring, a new wallet spent 440,000 USDC to go long on STRK on Hyperliquid yesterday morning. STRK subsequently rose more than 50%, generating an unrealized profit of $850,000 for the wallet within a day.

A user named Boblob on X has posted that two wallet addresses are actively exploiting the Papertrade protocol. These addresses, which execute trades on Hyperliquid with each transaction totaling approximately $20 million, have caused ETH price swings of around 10 to 20 basis points and built long positions on Papertrade with a nominal value of hundreds of millions of dollars. The user argues this exposes a critical vulnerability in the current Papertrade protocol that requires urgent fixing, as failure to do so would undermine its long-term sustainability. The claim remains a unilateral allegation from the user at this stage.