Hyperliquid Yield Farming Platform Hypervault Suffers $3.6M Withdrawal and Isolation of Founder Wallets.

Hyperliquid yield farming platform Hypervault Finance has experienced an "abnormal withdrawal" of $3.6 million to crypto mixer Tornado Cash. The project's website is inaccessible, and its social media profiles have been deleted. Hypervault was built on the Hyperliquid ecosystem, which has a total value locked of $2 billion. The incident brings scrutiny to the broader Hyperliquid ecosystem, which has drawn attention from traditional finance giants.

The decentralized finance (DeFi) community is in turmoil following the sudden withdrawal of approximately $3.6 million from Hypervault Finance, a platform built on the Hyperliquid ecosystem. The funds were transferred to Tornado Cash, a service often used to obscure the origin of cryptocurrency, raising concerns about a potential exit scam DeFi Platform Hypervault Goes Offline Following $3.6M Rugpull^[1].

Hypervault's operations were designed to maximize returns through "unmanaged" auto-compounding vaults, which allowed for automatic harvesting of assets using keeper bots. However, the rapid and diverse nature of these withdrawals has made it difficult to track the funds. The withdrawn assets included a variety of cryptocurrencies such as UPUMP, USDC, USOL, kHYPE, UETH, UBTC, USD₮0, USDe, and WHYPE, with a combined value exceeding $3.6 million DeFi Platform Hypervault Goes Offline Following $3.6M Rugpull^[1].

Adding to the unease, Hypervault's official website is offline, and its social media profiles have been deleted. Security analysts, including PeckShield, have highlighted the abnormal withdrawal patterns and Tornado Cash deposits as warning signs of a potential exit scam DeFi Platform Hypervault Goes Offline Following $3.6M Rugpull^[1]. Investors are being urged to keep a close eye on any remaining funds, refrain from making new deposits, and stay updated on the situation.

The incident brings scrutiny to the broader Hyperliquid ecosystem, which has a total value locked of $2 billion. Hyperliquid recently announced the HIP-3 feature on testnet, allowing the launch of builder-deployed markets. This new feature aims to expand the platform's capabilities and attract more users by offering more diverse assets for trading Hyperliquid responds to the challenge, prepares for builder-deployed markets^[3].

The recent market decline has also led to significant unrealized losses for "Whale" investors holding long positions on ETH and PUMP, with a loss exceeding $21.77 million 「Whale Friend」 Deposits 4.72M USDC into Hyperliquid to Avoid Liquidation in Last 2 Hours^[2]. Despite this, the whale deposited $4.72 million USDC into Hyperliquid to prevent liquidation, highlighting the platform's resilience in the face of market volatility.

As the DeFi landscape continues to evolve, incidents like the one involving Hypervault serve as a reminder of the risks associated with decentralized finance. Investors and financial professionals should remain vigilant and stay informed about developments in the industry.