Major Losses in Hyperliquid Trading
An anonymous Hyperliquid trader has dethroned James Wynn to become the trading platform’s largest losing whale, incurring over $40 million in losses in just one month, as per blockchain data.
According to Lookonchain, this trader engaged in high-leverage trades, suffering almost $40 million in losses on Hyperliquid (HYPE) after selling around 900,000 tokens prior to the asset’s rebound.
Following this, the whale faced a further loss of $35 million on an Ether (ETH) position. Subsequently, he switched to a short position, resulting in additional losses of $614,000. His Bitcoin (BTC) position remains underwater, showing unrealized losses nearing $2 million.
In the past month, Hyperdash data indicates that the whale’s wallet has already seen losses of $39.5 million. Nevertheless, the whale still holds a $152 million position with nearly 29x leverage.
Kinto Network’s Downfall
The native token of the decentralized finance (DeFi) platform Kinto Network plummeted by over 80% after the announcement of its Ethereum layer-2 blockchain’s shutdown in September.
Kinto stated that deteriorating market conditions necessitated the project’s closure. The protocol revealed that it had been operating without salaries since July and, unable to complete its latest financing attempt, decided to cease operations.
This shutdown follows a $1.6 million hack attributed to a vulnerability in the ERC-1967 Proxy standard.
While the project attributed its failure to this hack and escalating financial pressures, a community member pointed to the project’s high annual percentage yield offerings on stablecoins, which persisted even after the hack. Previously, the project had offered a staggering 130% annual yield on stablecoins, among the highest in the DeFi space.
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SwissBorg’s Exploit
Exchange platform SwissBorg reported a loss of nearly $41 million due to an exploit stemming from a vulnerability in the API of its staking partner, Kilin.
The project announced that approximately 193,000 Solana tokens, valued at $41 million, were taken from its Earn program. However, SwissBorg clarified that its app and other Earn products remained unaffected.
The company asserted that it continues to be in solid financial health despite incurring significant losses. It stated that daily operations have gone uninterrupted, and users who lost funds would be contacted directly by the platform.
CEO Cyrus Fazel reassured users that, although the loss is considerable, it does not endanger the platform’s stability.
Launch of MegaETH and New Stablecoin
The Ethereum layer-2 protocol MegaETH, backed by Vitalik Buterin, announced the introduction of a yield-bearing stablecoin to differentiate its business model from conventional layer-2s.
The protocol is developing the USDm stablecoin in collaboration with Ethena, which boasts over $13 billion in total value locked (TVL). The token is set to launch on Ethena’s infrastructure, which directs reserves into BUIDL, a tokenized US Treasury bill fund from BlackRock.
The yield generated from the stablecoin’s reserves will be utilized to cover sequencer fees, which are costs incurred by layer-2s when submitting batches of transactions to the Ethereum mainnet.
MegaETH co-founder Shuyao Kong mentioned that the stablecoin would lower user fees and enable a more versatile design for applications.
Bubblemaps Identifies Major Sybil Attack
Blockchain analytics firm Bubblemaps reported it has detected the largest Sybil attack in cryptocurrency history, highlighting 100 funded wallets that claimed $170 million in MYX tokens from a recent airdrop.
In a series of posts on X, the analytics firm demonstrated that the wallets received identical BNB amounts from OKX within moments of one another, nearly a month after the airdrop. Bubblemaps noted that, despite MYX achieving a $17 billion fully diluted valuation, it observed some anomalies.
The firm stated that the wallets showed no prior activity and claimed their airdrop almost simultaneously. “It’s hard to believe this was random,” Bubblemaps asserted, indicating that this could be the “biggest airdrop Sybil of all time.”
A Sybil attack is a security threat in decentralized networks wherein one attacker creates and maintains multiple fake identities to gain power over the system.
Market Performance Overview
According to data from TradingView, most of the top 100 cryptocurrencies by market capitalization concluded the week in positive territory.
- MYX Finance (MYX) achieved an impressive 1,100% gain over seven days, becoming the largest gainer of the week.
- Worldcoin (WLD) followed closely with over 90% in gains last week.
