Hyperliquid faces controversy just 25 days after its launch due to security concerns linked to suspected North Korean hacker activity. Taylor Monahan, a security researcher at MetaMask, identified transactions from North Korea-tagged wallets, which have incurred a $701k loss in ETH perps. The revelation that North Korean hackers are exploring the Hyperliquid platform raised alarms about a potential hack. The platform's highly centralized validator set is seen as a vulnerability. Liquidity on Hyperliquid, passed through a lock-and-mint style bridge from Arbitrum, witnessed a record high net outflow of $114.7m in USDC recently, though it still holds $2.22b in total value locked. Speculations suggest that to hack the bridge contract, three out of four validators would need to be compromised. While Circle could theoretically freeze stolen USDC, doing so would require time-consuming legal actions. Experts suggest that hackers would face challenges in moving sizable amounts of stolen funds without significant slippage between various liquidity venues.

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