Sting 🎒

trading ops @Backpack || liquidity & vol junkie || ex-prop trader turned full-time degen || often imitated, never duplicated || prev @tensor_hq founding team

[Sting 🎒 @KRTrades_]

What’s your user name based on?

I had a Stingray Corvette in college that I built myself, I would pour every $ and free time I had into it.

Toward the middle of college I was convinced I could become a trader, I studied trading/charts/orderflow more than I went to class..

Just before I graduated, I was offered a spot at one of the top proprietary trading firms in the world… but they were located in Sydney.. not an easy move for a broke college grad from the US.

I sold my most prized possession for rent money & made the move half way across the world

I’m not really sure how long I started using the name ‘Stingray’ before I got rid of it, but it serves as a reminder of my passions, where I come from & how hungry i was for success.

On the trading floor, my name got shortened to ‘sting’ gotta love the aussies for shortening literally everything 😉 but it stuck.

[Ansem 🐂🀄️ @blknoiz06]

what's your user name based on?

[Sting 🎒 @KRTrades_]

@daaniyaan

[Sting 🎒 @KRTrades_]

Reminiscences of a stock operator

[butler @btlrtrades]

papertrade got exploited for $1.28M by 0x2025137a136bea7446deba681cbfc7cf1970840e within just 8 hours of being live.

here is the on-chain breakdown of how a clever attacker with more than $13M all time PnL and $14B volume on hyperliquid exploited @papertrade_xyz

how it works: papertrade prices every trade off hyperliquid's ETH price at that exact second. so if you can move hyperliquid's price for a few seconds, papertrade pays you for it.

that's exactly what 0x2025.. did, manipulating hyperliquid's price to move their papertrade positions into profit.

22:01 opens $200M of longs on papertrade
22:01 buys 6,055 ETH on hyperliquid, price goes up $3
22:03 closes the longs → +$168k
22:03 flips to $160M of shorts
22:03 sells 5,260 ETH on hyperliquid, price drops $3
22:04 closes the shorts → +$97k
22:04 flips long again

the exploiter repeats this pattern over and over: long on papertrade, pump the price on hyperliquid, close the longs and open shorts on papertrade, dump the ETH back on hyperliquid, close the shorts.

they won 97% of their trades
296 wins out of 305 trades
typical hold: 98 seconds
total pnl: $1.73M

then it went wrong:

23:13 opens 30 shorts on papertrade, $297M at 2507.35
23:13 sells ~6,600 ETH on hyperliquid, price drops to 2504.4

same move as before. but this time the close never goes through. the short is stuck

02:31 ETH hits 2509.95. all 30 shorts liquidated, -$450k

leaving them with $1.28m of profit.

my guess is the team blocked 0x2025's closes to stop the attack. this is a temporary fix, the underlying oracle of papertrade is still identical, and vulnerable to the exact same manipulation which anyone could re-create from a fresh wallet.

it seems papertrade needs to upgrade their oracle system from using the BBO to possibly using hyperliquid's official oracle system which is less subject to manipulation as it uses a combination of exchange's price feeds.

papertrade address: https://t.co/BCWyHEHHCF

hyperliquid address: https://t.co/Gb89XXZGTj

[Sting 🎒 @KRTrades_]

@philjacobson 💯

[Sting 🎒 @KRTrades_]

a rare post from CS.. one of the most respected legal minds in the industry.. 📝

[GoLadsCS @GoLadsCS]

Don't think you get how securities laws or businesses work. Most of this is just wrong and conflates different concepts:

- 13.5% of Robinhood's total revenue last year came from securities lending alone.

- The incentives claim confuses our on-chain product with centralized exchange products. There are zero incentives on DeFi - different pools entirely. And Backpack Securities numbers don’t include any CEX numbers, whereas all other issuers do.

- Re: regulatory tailwinds, you're conflating permissioned/closed-loop tokens. We actually believe our tokens are the only one that is compatible with both models as it is not a debt security.

- Re: secondary market buyer who never onboards having no rights, this is true of every open-loop tokenized stocks today. Again, we believe our product will work with both open-loop and closed-loop models.

- And yes, no one would buy tokenized stocks if they have access to IBKR, just as no one would use stablecoins if they have Visa/MC.

- Not sure where you’re located but generally, we run APAC users through our NZ broker, EU users will go through our EU MiFiD broker etc. Only a minority of jurisdictions route through Comoros.

- Imagine if every token ever launched gave tokenholders 20% of the equity in its Labs/operating/founder's company.

- The thesis isn't fees, and it isn’t about tokenized issuers comparing amongst each other. We want to bring NBBO to Solana.

[GoLadsCS @GoLadsCS]

Don't think you get how securities laws or businesses work. Most of this is just wrong and conflates different concepts:

- 13.5% of Robinhood's total revenue last year came from securities lending alone.

- The incentives claim confuses our on-chain product with centralized exchange products. There are zero incentives on DeFi - different pools entirely. And Backpack Securities numbers don’t include any CEX numbers, whereas all other issuers do.

- Re: regulatory tailwinds, you're conflating permissioned/closed-loop tokens. We actually believe our tokens are the only one that is compatible with both models as it is not a debt security.

- Re: secondary market buyer who never onboards having no rights, this is true of every open-loop tokenized stocks today. Again, we believe our product will work with both open-loop and closed-loop models.

- And yes, no one would buy tokenized stocks if they have access to IBKR, just as no one would use stablecoins if they have Visa/MC.

- Not sure where you’re located but generally, we run APAC users through our NZ broker, EU users will go through our EU MiFiD broker etc. Only a minority of jurisdictions route through Comoros.

- Imagine if every token ever launched gave tokenholders 20% of the equity in its Labs/operating/founder's company.

- The thesis isn't fees, and it isn’t about tokenized issuers comparing amongst each other. We want to bring NBBO to Solana.

[Sting 🎒 @KRTrades_]

theyre really letting us buy $STONK before another 50% move to ATHs

the mental gymnastics/takes ive seen on the TL today on why stonk is bad for memes is pretty poor, if you want to short it based on the chart fair play

study who PUMP incentivizes vs STONK, deployers vs holders

[Sting 🎒 @KRTrades_]

@TraderMagus extremely proud of you bro, keep killin it

[Sting 🎒 @KRTrades_]

theyre really letting us buy $STONK before another 50% move to ATHs

the mental gymnastics/takes ive seen on the TL today on why stonk is bad for memes is pretty poor, if you want to short it based on the chart fair play

study who PUMP incentivizes vs STONK, deployers vs holders

[sol.woofer @solwoofer]

https://t.co/ZMFTtEXds7

[Sting 🎒 @KRTrades_]

@getoffchain 🤝

[Sting 🎒 @KRTrades_]

me buying $META & solana:Ax5dAamJPeuaLpFUzs9FdcpoUhHDcxyjPzxCJQidjups

[Sting 🎒 @KRTrades_]

imagine not betting on a builder like @iamzhe

solana:Ax5dAamJPeuaLpFUzs9FdcpoUhHDcxyjPzxCJQidjups

[Sting 🎒 @KRTrades_]

@TheOneandOmsy huuuuuuge!! congrats brotha!

[Sting 🎒 @KRTrades_]

@rajj_s23 @iamzhe

[Sting 🎒 @KRTrades_]

imagine not betting on a builder like @iamzhe

solana:Ax5dAamJPeuaLpFUzs9FdcpoUhHDcxyjPzxCJQidjups

[Sting 🎒 @KRTrades_]

@juke10x @iamzhe SNED

[Sting 🎒 @KRTrades_]

@rajj_s23 @iamzhe vamossss

[Sting 🎒 @KRTrades_]

@nellyeeee @iamzhe

[Sting 🎒 @KRTrades_]

@rajj_s23 appreciate it brotha 🤝❤️

[Sting 🎒 @KRTrades_]

huge advocate of taking bets with your career if you have the opportunity

Tensor, Backpack & the broader Solana play all directly feed into theses I had/hold on how I see the market developing 🤝🎒

[Sting 🎒 @KRTrades_]

@TraderMagus @iamzhe