Hyperdrive Exploit Drains $773K; Resumption, Compensation Promised

- Exploit drains $773,000 due to protocol vulnerability. - Team resolves issue; services to resume within 24 hours. On September 28, 2025, Cryptopolitan reported that Hyperdrive, a DeFi yield protocol in the Hyperliquid ecosystem, fell victim to an exploit that drained $773,000 from two user accounts. In response, the protocol temporarily halted market operations and suspended withdrawals. The team swiftly diagnosed the problem, identified and fixed the underlying flaw, and assured affected users of a full reimbursement. While Hyperdrive has not disclosed detailed compensation plans, the team estimates service will be restored within 24 hours. The attack exploited a vulnerability in Hyperdrive’s router contract. This flaw allowed the attacker to execute unauthorized calls on whitelisted contracts and bypass security protocols to divert user funds. The attacker bridged the stolen assets, 288.37 BNB and 123.6 ETH, to the BNB Chain and Ethereum network. The team advises users to refrain from interacting with the protocol until functionality is fully restored. This incident underscores growing security concerns within the Hyperliquid ecosystem. Earlier controversies include a suspected $3.6 million rug pull at HyperVault and manipulation in the JELLYJELLY project earlier this year. Such recurring setbacks have strained community trust and impacted market sentiment. Reports that BitMex co-founder Arthur Hayes liquidated his HYPE token holdings have exacerbated these concerns. Hayes, once a staunch advocate for Hyperliquid, has since distanced himself amid these developments. Market data from CoinMarketCap shows Hyperliquid (HYPE) was trading at $46.947 as of 21:15 UTC on September 28. Its 24-hour trading volume increased by 3.007%.