Hyperliquid News Today: Private Key Breach Drains $21M from Hyperliquid, Highlighting DeFi Security Gaps

A $21 million cryptocurrency theft from a Hyperliquid user was confirmed on October 10, 2025, following a private key compromise. Blockchain security firm PeckShieldAlert reported that the attacker drained 17.75 million DAI and 3.11 million MSYRUPUSDP from the victim's wallet, swiftly bridging the assets to the Ethereum network Hackers Hit Hyperliquid Twice as $21M Stolen After Hyperdrive …^[1]. The breach occurred after the private key was leaked, granting the attacker full control over the wallet. This incident marks the second major security event on the Hyperliquid ecosystem within a week, following a $782,000 exploit targeting the Hyperdrive lending protocol $21M Crypto Theft on Hyperliquid Tied to Private Key Leak^[2].

The attack highlights the persistent risks of private key exposure in decentralized finance. Unlike smart contract vulnerabilities or exchange exploits, this breach was user-side, underscoring the critical importance of secure key management. PeckShield noted that the stolen funds were systematically transferred through multiple Ethereum addresses to obscure their origin, a tactic common in cryptocurrency laundering Hyperliquid User Loses $21 Million to Hackers After Private Key …^[3]. Security experts emphasized that hardware wallets, multi-signature setups, and offline storage are essential for high-value accounts to mitigate such risks $21 million stolen from Hyperliquid user after apparent private key ...^[4].

The incident adds to a surge in crypto hacks in 2025, with North Korea-linked actors reported to have stolen over $2 billion in digital assets year-to-date, according to Elliptic. The firm noted that while exchanges remain primary targets, high-net-worth individuals are increasingly vulnerable due to weaker personal security measures Hackers Hit Hyperliquid Twice as $21M Stolen After Hyperdrive …^[5]. CertiK's analysis further revealed that private key breaches accounted for $1.05 billion in losses across 296 incidents in 2024, representing 39% of all on-chain security incidents Hyperliquid User Loses $21 Million to Hackers After ... - TradingView^[6].

Hyperliquid's token, HYPE, experienced a brief price dip following the hack, as the attacker liquidated a $16 million long position and 100,000 HYPE tokens. However, the token recovered quickly, reflecting market confidence in the platform's protocol integrity $21 Million Stablecoin Heist: Private Key Leak Rocks Hyperliquid …^[7]. The broader crypto market has seen similar incidents, including a $27 million loss on BNB Chain's Venus protocol and a $1.2 million breach of Seedify's DAO launchpad, both attributed to private key compromises Hyperliquid User Loses $21 Million Due to Private Key ... - Decrypt^[8].

The attack on Hyperliquid underscores the growing sophistication of cybercriminals in exploiting human vulnerabilities, such as phishing and malware, rather than technological flaws. As decentralized platforms expand, experts urge users to adopt advanced security practices, including cold wallets and real-time on-chain monitoring, to prevent future breaches .