DeFi

James

Hyperliquid

<p>Hyperdrive, a lending protocol built on the Hyperliquid (HYPE) blockchain, suffered a smart contract exploit on Saturday night that resulted in losses of around $782,000. This marks the third major security incident tied to the rapidly growing Layer 1 network.</p>
<p>According to blockchain security firm CertiK, the attacker repeatedly exploited an arbitrary call in Hyperdrive’s router. This flaw allowed them to drain funds from two pools, the Primary USDT0 Market and Treasury USDT Market.</p>
<figure class="wp-block-embed aligncenter is-type-rich is-provider-twitter wp-block-embed-twitter">
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   <p><a href="https://twitter.com/hashtag/CertiKInsight?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">#CertiKInsight</a> 🚨<br><br>We have seen an exploit on <a href="https://twitter.com/hyperdrivedefi?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">@hyperdrivedefi</a>, the attacker repeatedly exploited an arbitrary call in the router to take users' funds of 672,934 USDT0 and 110,244 thBILL, ~$782K in total.<a href="https://t.co/KEl4qLqlyV" rel="noopener noreferrer nofollow">https://t.co/KEl4qLqlyV</a><br><br>Stay Vigilant! <a href="https://t.co/opCSZel77G" rel="noopener noreferrer nofollow">pic.twitter.com/opCSZel77G</a></p>— CertiK Alert (@CertiKAlert) <a href="https://twitter.com/CertiKAlert/status/1972117426893738341?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">September 28, 2025</a>
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<p>The attacker stole about 673,000 USDT0 stablecoins and 110,244 thBILL tokens, worth approximately $782,000, later converting the assets into BNB and Ethereum before moving them off-chain.</p>
<p>Hyperdrive’s team responded quickly by pausing the protocol to stop further damage. In an <a href="https://x.com/hyperdrivedefi/status/1972189259504537624" target="_blank" rel="noopener noreferrer nofollow">update</a> on X, the team said it had already identified and fixed the root cause. It also confirmed that affected accounts had been identified and promised a compensatory plan, although details of that plan remain unclear.</p>
<h2 class="wp-block-heading" id="hyperliquid-s-track-record-of-incidents">Hyperliquid’s track record of incidents</h2>
<p>This is not the first time Hyperliquid’s ecosystem has faced trouble. In March, a whale manipulated the price of Solana-based memecoin JELLYJELLY, forcing the protocol to absorb $12 million in losses. An earlier manipulation event had also cost a <a href="https://www.cryptotimes.io/2025/03/12/hyperliquid-takes-4m-loss-as-trader-manipulates-hlp-withdrawal/" target="_blank" rel="noopener noreferrer nofollow">Hyperliquid vault around $4 million</a>.</p>
<p>Despite these challenges, Hyperliquid continues to gain traction in the decentralized finance (DeFi) space. Data from <a href="https://defillama.com/protocol/hyperdrive-hl" target="_blank" rel="noopener noreferrer nofollow">DeFiLlama</a> shows Hyperdrive currently holds about $14.5 million in total value locked (TVL).</p>
<h2 class="wp-block-heading" id="market-reaction">Market reaction</h2>
<p>At the time of writing, Hyperliquid’s HYPE token of Hyperliquid was trading at $47.14, up 4.20% in the last 24 hours, with a market cap of approximately $15.8 billion and a trading volume of over $3 billion, according to <a href="https://coinmarketcap.com/currencies/hyperliquid/" target="_blank" rel="noopener noreferrer nofollow">CoinMarketCap</a>.</p>
<p>The Hyperdrive hack underscores the current security risk in DeFi, including on rapidly expanding networks such as Hyperliquid. While their team has acted quickly to contain the issue, users will be watching closely for the promised compensatory measures and postmortem report.</p>
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
 <p>Also Read: <a href="https://www.cryptotimes.io/2025/09/25/james-wynn-hyperliquid-will-die-slow-painful-death-as-aster-soars/" target="_blank" rel="noopener noreferrer nofollow">James Wynn: Hyperliquid Will Die ‘Slow &amp; Painful Death’ As ASTER Soars</a></p>
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Hyperdrive Exploit Leads to $782K Loss on Hyperliquid Network

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The Crypto Times

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