Hyperdrive says it has fixed the issue and plans to resume operations within 24 hours

Hyperdrive, a DeFi yield protocol operating on the Hyperliquid ecosystem, has committed to restoring market operations and reimbursing affected users after a breach that forced it to pause all markets and suspend ￰0￱ its latest update, the team says it has identified and fixed the root cause and expects full functionality to resume within 24 ￰1￱ promises compensation Hyperdrive’s latest communication asserts that the flaw has been fixed and that markets should resume within a day, if not ￰2￱ team says it has already identified the affected accounts and will implement a compensatory plan. However, details on compensation terms have not yet been ￰3￱ are cautioned against interacting with the protocol or sending funds until full functionality is ￰4￱ reiterated the need to trust only its official channels and warned against scams, particularly unsolicited direct messages requesting keys.

A transparent and timely post-mortem, full reimbursements, and clear communication could help undo reputational ￰5￱ any failure to deliver promised repayments, or further security lapses, could erode user confidence ￰6￱ the compensation plan succeeds and markets resume, Hyperdrive may salvage much of its ￰7￱ if not, the incident could mark a turning point for governance scrutiny in the Hyperliquid ecosystem, which just launched its own USDH stablecoin on September 24, as Cryptopolitan ￰8￱ Hyperdrive’s reassurances, community sentiment around it and other Hyperliquid-based protocols is not at optimal levels right ￰9￱ Hayes, co-founder of BitMex, who has been bullish on Hyperliquid, recently dumped all his HYPE ￰10￱ Hyperdrive exploit adds to the ecosystem’s headache, as it came barely 48 hours after a separate project, HyperVault, saw a $3.6 million outflow in what is now suspected to be a rug pull.

HyperVault’s X account has been deleted, and its website is reportedly ￰11￱ this year, Hyperliquid was also hit by the JELLYJELLY manipulation in March, which led to the token’s ￰12￱ to resume after brief pause post-exploit On September 27, Hyperdrive posted on X that it had become aware of issues impacting its protocol, specifically in the Primary USDT0 Market and Treasury USDT ￰13￱ contain potential damage, the protocol halted all interest mechanisms, paused markets, and suspended ￰14￱ a follow-up post released hours later, Hyperdrive declared that the root cause had been identified and rectified, and that a compensation plan for affected accounts would be deployed ￰15￱ team said markets should return to normal operations within 24 ￰16￱ to third-party reporting, the exploit affected two user accounts in the Treasury market and is estimated to have drained around US$773,000.

Blockchain analytics indicate that the stolen funds were divided and bridged to BNB and Ethereum via the debridge protocol, with 288.37 BNB and 123.6 ETH going to the respective ￰17￱ took advantage of technical fault The vulnerability that was reportedly exploited in this incident appears to come from a flaw in its router ￰18￱ allowed the attacker to invoke arbitrary calls on contracts in the whitelist and bypass the platform’s security to move user funds from the thBILL Treasury ￰19￱ claim the attack looks like the work of a professional; however, the narrow scope, limited to two markets, allowed Hyperdrive to contain damage before it became a protocol-wide ￰20￱ the Hyperliquid ecosystem, this isn’t good news, as it is coming amid increasing concern about the network’s security ￰21￱ say the cluster of incidents is testing users’ confidence in the Hyperliquid ￰22￱ you're reading this, you’re already ￰23￱ there with our newsletter .