Hyperliquid-based Papertrade sees open interest plunge 93.7% in 24 hours

Open interest on Papertrade, a new Hyperliquid-based perpetual futures DEX, plunged 93.7% to $693 million within 24 hours after topping $11 billion. Total value locked also shrank sharply to around $67 million from $118 million. Papertrade, which drew attention for offering leverage of up to 1,000x, also faced controversy over the prioritization of small-order processing and an attempted manipulation of oracle prices. The exchange said it had blocked attempts to distort Hyperliquid’s BBO quotes and defended the system, but the project’s early overheating cooled rapidly as liquidity left.