Hyperliquid (HYPE) Net Outflows Top $250M Amid Fears Over North Korea Hackers

Hyperliquid (HYPE), a blockchain protocol focused on the performance of decentralized finance (DeFi) applications, has witnessed a whopping $256 million

Decentralized finance (DeFi) blockchain protocol Hyperliquid (HYPE) has witnessed a massive $256 million in outflows following reports of North Korean hackers trading on the platform.

Despite the concerning news, HYPE, the native cryptocurrency of the Layer 1 network, has seen a huge 10% gain in 24 hours.

Hyperliquid net outflows top $250M amid fears over North Korea hackers Hyperliquid has seen over $256 million in net outflows as security experts revealed that North Korean threat actors had been trading on the platform.#Norque #NOQ #Bitcoin #ETH #AI #Blockchain

Also Read : HYPE, VIRTUAL, and ONDO: Altcoins Defining the Crypto Bull Run

According to a report by blockchain analytics firm Nansen, Hyperliquid had the highest net outflows among digital asset protocols in the past 30 days. The firm’s analysis highlighted seven protocols that had outflows exceeding $100 million.

The report also noted that seven protocols had inflows exceeding $100 million, with decentralized exchange (DEX) Sudoswap leading the way with $669 million in net inflows over the past 30 days.

However, Hyperliquid was the only protocol to witness outflows in the hundreds of millions, while other protocols saw outflows ranging from $100-$150 million.

Interestingly, Hyperliquid’s outflows were also significantly higher than the inflows experienced by any of the protocols analyzed by Nansen.

As highlighted by security expert Taylor Monahan at prominent software crypto wallet Metamask, North Korean hackers do not have to engage with the users’ funds in order to breach security.

Monahan added that there are significant vulnerabilities in Hyperliquid’s system, and that DPRK’s Lazarus Group is known for actively exploiting digital asset protocols.

In response to the news, Hyperliquid has denied being exposed to North Korean hackers, adding that all the users’ funds are accounted for.

The platform confirmed that “no vulnerabilities have been shared by any party” due to a massive bounty program for developers and coders who report bugs in the protocol.

Several individuals on X (formerly Twitter) discussed the possibility of North Korean hackers not touching the users’ funds but using the protocol for their own goals.

Others noted the similarity in Hyperliquid denying any vulnerability and the collapse of Do Kwon’s Terra ecosystem and crypto lending platform Celsius.

HYPE Token Price Action

As the broader digital asset market turned bullish, except Bitcoin (BTC) that trades at $94K, HYPE also surged above the $30 price tag after a 10% price surge in 24 hours.

The cryptocurrency aims to enter the top 20 with a market cap of $8.12 billion and has gained 836.86% in the last 30 days.

The 4-hour chart below remains bullish for Hyperliquid while the Relative Strength Index (RSI) reads a value of 53.19 which means that the buying pressure for the HYPE token remains higher than the selling pressure.

The gradient of the line suggests that a retest of $35 might be possible in the near future.

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