Manipulated and divested, Papertrade's thousand-fold leverage experiment started poorly

On October 10, Zhou announced that Papertrade, a synthetic perpetual agreement based on HyperEVM, had officially opened for trading. The platform uses the maximum leverage of 1000 times as a selling point and adopts the "loss is mining" model to issue PAPER tokens to users. About US$138 million in user funds were pooled during the pre-deposit stage. About 8 hours later, a certain chain address achieved a net gain of US$1.28 million on Papertrade by manipulating Hyperliquid's ETH quote. In response, Papertrade officially stated that it had foreseen relevant risks and initiated position control measures. The platform then experienced a sudden drop in popularity. According to official website data, as of press time, TVL had shrunk from US$138 million to US$60.6 million, and the size of open positions had also dropped from a peak of US$3.3 billion to less than US$400 million.