Hyperliquid faced its largest single-day outflow, exceeding $256 million, after reports surfaced about North Korean hackers trading on the platform. Security expert Tay Monahan pointed out that hackers linked to the Democratic People’s Republic of Korea (DPRK) had begun using Hyperliquid as early as October, raising concerns about potential exploitation. Despite these fears, Hyperliquid reassured users that no exploit had occurred, asserting that all funds were secure. On December 23, outflows peaked at $502.71 million while inflows hovered around $253.5 million. The platform's native token, HYPE, plummeted nearly 20% following these revelations. Some experts like Cygaar suggested that measures exist to prevent significant thefts, including the ability for USDC issuer Circle to blacklist addresses, and options for rolling back the Arbitrum chain if a serious threat was identified. In response to the alarming claims, discussions among crypto enthusiasts became heated, reflecting the anxiety surrounding security in the crypto derivatives market.

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