Funding Rate Manipulation on Hyperliquid: How Coordinated Traders Artificially Spike Rates to Liquidate Opposing Positions
Hyperliquid's architecture delivers the speed and transparency of a decentralized order book with the liquidity depth of a centralized exchange. Traders can execute perpetual swaps on 100+ assets without gas fees or wallet intermediation, and positions are settled entirely on-chain. That transparency, however, creates a specific vulnerability: funding rates—the payments...