Hyperliquid Faces Security Crisis: $700,000 Stolen in Hyperdrive Hack and $3.6M in HyperVault Exploit

Hyperliquid, a fast-rising decentralized finance (DeFi) platform, is facing a security crisis after a string of high-profile incidents. A hack drained an estimated $700,000 from two compromised Treasury Market positions, and another protocol, HyperVault, saw $3.6M stolen and laundered. Security researchers raise concerns about the network's design, which prioritizes ultra-fast execution and has only four validators, making it vulnerable to coordinated breaches.

Hyperliquid, a fast-rising decentralized finance (DeFi) platform, is currently grappling with a significant security crisis. Recent incidents have raised serious concerns about the network's design and vulnerability to coordinated breaches. Two high-profile incidents have highlighted these issues.

Firstly, an estimated $700,000 was drained from two compromised Treasury Market positions. This incident underscores the potential risks associated with DeFi platforms that prioritize ultra-fast execution over robust security measures. The rapid execution speed of Hyperliquid's network may have facilitated the swift transfer of funds, making it challenging to detect and prevent the theft.

Secondly, the DeFi project HyperVault, built on Hyperliquid’s layer-1 blockchain, saw $3.6 million worth of crypto assets disappear. According to blockchain security firm PeckShield, the funds were first bridged from Hyperliquid to Ethereum (ETH), then swapped for ETH, and subsequently laundered through Tornado Cash, a controversial platform known for concealing digital assets Hyperliquid DeFi Project Hypervault Accused of Rug Pull As $3,600,000 Worth of Crypto Disappears Into Tornado Cash: PeckShield^[1]. The abrupt shutdown of HyperVault's online presence and the deletion of its X account and Discord channel further suggest a possible exit scam.

The incidents have prompted security researchers to raise concerns about Hyperliquid's network design. With only four validators, the network is more susceptible to coordinated attacks. The recent incidents highlight the need for more robust security measures and a greater emphasis on security in DeFi platforms.

The Hyperliquid incidents are not isolated cases. In 2025 alone, the web3 sector has already lost nearly $6 billion to rug pulls, a 6,499% increase from the same period in 2024 Hyperliquid DeFi Project Hypervault Accused of Rug Pull As $3,600,000 Worth of Crypto Disappears Into Tornado Cash: PeckShield^[1]. These incidents underscore the importance of thorough due diligence and robust security measures in the DeFi space.