Hyperliquid ETH trades raise concerns: Was Papertrade exploited?

Decentralized trading platform Papertrade has faced allegations of price manipulation after two cryptocurrency wallets reportedly used trades worth around $20 million on Hyperliquid to move Ethereum prices by 0.1%–0.2% while holding positions worth hundreds of millions of dollars. Papertrade faces allegations that two wallets manipulated Ether prices through large trades on Hyperliquid recently. Researcher claims roughly $20 million orders moved ETH quotes by 10 to 20 basis points. Papertrade uses Hyperliquid order book midpoint pricing for synthetic trades settled against its liquidity pool. Hyperliquid uses separate oracle and mark prices for margin calculations, according to official trading documentation.