DeFi Community On Alert Following Hypervault’s $3.6 Million Suspected Rug Pull

Decentralized finance (DeFi) protocol HyperVault is suspected to have executed a “rug pull,” as on-chain analytics account PeckShield noted an abnormal outflow of funds from the protocol, worth close to $3.6 ￰0￱ Protocol HyperVault Pulls The Rug According to an X post by on-chain analytics account PeckShield, Hyperliquid-based DeFi protocol HyperVault appears to have pulled a quick one on its users, defrauding them of funds worth almost $3.6 ￰1￱ noted that the stolen funds were bridged from Hyperliquid to Ethereum, swapped into ETH, and then 752 ETH were deposited into Tornado ￰2￱ the uninitiated, Tornado Cash is a popular crypto mixer that is typically used by hackers to erase their on-chain trail.

Notably, UPUMP tokens worth $191,494, USDC worth $107,358, WHYPE worth $1.55 million, and several other tokens were stolen from ￰3￱ noted that HyperVault have also deactivated all their socials – including the X handle – virtually confirming the rug ￰4￱ explain, a rug pull is a type of crypto scam where developers suddenly abandon a project and drain its funds, leaving investors with worthless tokens. It’s common in DeFi and NFT spaces, where anonymity and lack of regulation make quick exits ￰5￱ offered “unmanaged” auto-compounding vaults, strategy adapters, and keeper-bot ￰6￱ features helped users route their digital assets to lending, looping, and concentrated liquidity venues on ￰7￱ X user HypingBull, commented , saying that they had been warning about HyperVault since September ￰8￱ an X post, the user stated that the protocol’s developers lied to them about audits, adding: I have just reached Pashov (blockchain audit firm) on Telegram, asking if Hypervaut is doing an audit via ￰9￱ answer was: “First time I hear the project with this name”.

WTF? This is super suspicious. I am withdrawing all the funds from the protocol until the team clarifies what’s going on. Unfortunately, users continued to deposit funds into the DeFi protocol, lured by the protocol’s promised 90% APR yields on HYPE tokens.

However, the extraordinarily high-yield promises at the time did not raise the alarm among ￰10￱ said, the HYPE token appears to be minimally impacted by this suspected rug pull, as it is trading at $42.89 at the time of writing, up 2.8% on the day. However, the token is down almost 25% over the past ￰11￱ Still The Wild West? While the total crypto market cap now hovers over $3.8 trillion, the safety of users continues to be a major factor hindering the industry from mainstream ￰12￱ example, crypto phishing attacks recorded a significant surge in August 2025, impacting as many as 15,230 victims, resulting in a loss of $12 million in user funds. Similarly, the THORChain Founder lost $1.35 million earlier this month after a deepfake Zoom and Telegram ￰13￱ press time, Bitcoin (BTC) trades at $109,488, down 1.6% in the past 24 hours.