Hyperdrive freezes its market after a confirmed exploit led to nearly one million dollars in losses

Hyperdrive a DeFi yield strategy protocol built on the Hyperliquid ecosystem has confirmed that two user wallet positions in its Treasury Market got compromised in a digital heist that led to an estimated $700,000 in ￰0￱ what is being publicized as a precautionary measure Hyperdrive has taken to X to reveal it has paused all money markets across the platform while it continues its ￰1￱ the meantime

the team has emphasized that there is no vulnerability in the thBILL asset itself and the issue does not impact the $HYPED ￰2￱ moves to calm exploit rumors According to posts on X the exploit is being linked to a flaw in Hyperdrive’s operator permission ￰3￱ had reportedly designated the protocol’s Router as an operator allowing it broad access to call any whitelisted contract—including the Market ￰4￱ took advantage of this by invoking the Router to put out arbitrary ￰5￱ gave them access that they used to manipulate and ultimately drain the affected ￰6￱ incident comes not long after the $3.6 million rug pull by HyperVault

yet another Hyperliquid-based yield protocol which happened on September 26 ￰7￱ irony of the attacks is not lost on crypto natives who are watching keenly and have pointed out how there seems to be an ongoing campaign targeting the Hyperliquid ￰8￱ year alone the space has endured a string of security issues

including earlier exploits like the March JELLYJELLY manipulation and the August XPL ￰9￱ attacks have hit community sentiment somewhat “ dampening ” Hyperliquid’s ￰10￱ heist comes one day after HyperVault exploit On September 26 blockchain security firm PeckShield flagged unusual outflows of about $3.6 million from the decentralized finance platform Hypervault being bridged from Hyperliquid to ￰11￱ bridging

the funds were swapped into ETH and approximately 752 ETH worth almost $3 million was deposited into Tornado Cash

a classic sign of crypto rug ￰12￱ to Hypervault’s website and documentation it is responsible for the promotion of “unmanaged” auto-compounding vaults keeper-bot harvests and strategy adapters that route assets to lending

looping and concentrated liquidity venues on ￰13￱ generated revenue by deploying user deposits across external venues via modular ￰14￱ project’s X account has now been deleted and the official website remains inaccessible raising suspicions of an exit ￰15￱ X

there is still a lot of confusion and speculation from whales and regular users who are dealing with losses and inquiring about any possibility of ￰16￱ you're reading this you’re already ￰17￱ there with our newsletter .