Papertrade’s BBO Pricing Faces Manipulation Allegations on HyperEVM

Papertrade, a HyperEVM-based perpetual trading platform, is facing allegations that two wallets manipulated Ethereum pricing on Hyperliquid to influence much larger synthetic positions. On October 11, X user @Dr_bobo54 alleged that approximately $20 million in orders moved ETH’s best-bid-and-offer (BBO) quotations by 10 to 20 basis points, equivalent to 0.1% to 0.2%. The reported activity has drawn attention to Papertrade’s execution model, which uses Hyperliquid’s BBO midpoint to price positions against an internal liquidity pool. The allegations have not been independently verified, and Papertrade has not confirmed any financial losses.