ostmn

[Hyperliquid @HyperliquidX]

Hyperliquid is built on a foundation of onchain transparency. A recent article made several claims that are factually incorrect:
+ Solvency: Every dollar is accounted for; the author failed to count native HyperEVM USDC.
+ Integrity: Testnet functions are exactly that - testnet only for testing. They cannot be executed on mainnet.
+ Transparency: Hyperliquid is more transparent and decentralized than all other major venues for perps trading. The entire state is independently maintained by a permissionless validator set and verified through BFT proof-of-stake consensus by each node. Every order, trade, and liquidation is available in real time during execution. Anyone can run a node and index the chain’s state and transitions. No major perps platform comes close to this guarantee for users.

See our response to the writer’s individual points below.

Claim: The system is undercollateralized by $362M

False: The Hyperliquid blockchain state is fully and verifiably solvent. The author excluded the HyperEVM USDC (a publicly announced and much anticipated integration), which exists in parallel to the Arbitrum bridge. Every USDC in circulation on HyperCore is accounted for transparently, by summing up the balances of https://t.co/Fk2lhZvpXD and https://t.co/pGBPcsJUTl. At the time of writing, this amounts to 3.989B + 362M = 4.351B USDC on HyperCore. USDC on the HyperEVM can be computed by subtracting 362M from the 421M on the HyperEVM USDC contract (https://t.co/ohiJm3WzN8), totaling another 59M USDC on HyperEVM.

The sum of the Arbitrum bridge and native USDC balances can be compared against the sum of user balances on HyperCore. As highlighted in the introduction, this exercise of verifying complete system solvency against user balances is uniquely possible on Hyperliquid compared to competitors.

The current Arbitrum bridge was an important stepping stone in bootstrapping the Hyperliquid network and will be deprecated as the migration to native USDC is complete, bringing Hyperliquid to parity with other major L1s.

Claim: There is retroactive volume manipulation via TestnetSetYesterdayUserVlm

False: This is a testnet-only function to allow for comprehensive testing. The author states that “the function’s presence is the problem…capability alone violates the trust model.” Testnet-only features that enable more rigorous testing of edge cases do not undermine the chain’s integrity. The fee schedule on Hyperliquid interacts in a complex way with inputs: user volume, aligned quote token status, maker vs taker, HIP-3, etc. It’s important to test these interactions on testnet, and therefore the testnet chain has a set of admin testing functions that do not exist on mainnet. The related TestnetAddMainnetUser action is to mark a testnet user as having corresponding mainnet state, to avoid DDOS and other attacks that are “free” on testnet. None of these functions are callable on the mainnet state.

While the execution source is not available, anyone can verify every trade onchain by running a node, and sum up the values to confirm that volume numbers are reflected accurately in onchain state. Similar to onchain solvency verification against the sum of all user account values, this is possible on Hyperliquid but not on most competitive platforms.

Given that this code path is entirely unreachable on mainnet, future development work will entirely compile out this testnet-only logic on mainnet nodes to avoid any possible misunderstanding or misinterpretation.

Claim: Some users have special privileges such as fee exemptions or retroactive volume manipulation used to influence the airdrop

False: Like system solvency, user balances, and individual trades, the fees paid by any address is available onchain. Each trade along with its fees paid or rebates received are transparently indexed by nodes, API servers, and third party analytics providers. There are no such mechanisms to distort fees, and no such mechanisms could have influenced the HYPE airdrop. Furthermore, the genesis distribution of HYPE is fully available onchain, and users can verify the historical behavior of every such address.

Claim: “CoreWriter” godmode can mint tokens, move user funds without signatures, crash random validators and basically do whatever it wants

False: The CoreWriter spec is fully documented here https://t.co/TTMWI5pDBB and replicable in the open source HyperEVM execution. CoreWriter is a way for smart contracts on HyperEVM to send HyperCore actions as part of HyperEVM block execution. It supports various actions that are normally sent by EOAs such as staking and placing orders, but has no such features to “mint tokens, move user funds without signatures, crash random validators and basically do whatever it wants.” This is a fundamental misunderstanding of how HyperCore interacts with the HyperEVM.

Claim: Chain can freeze via governance, and no undo function exists

Misinterpreted: The chain freezes during network upgrades. There is no undo function because the validators adopt a new binary at that height. This is analogous to how other networks perform hard forks at future heights determined by social consensus.

Suspicious activity on POPCAT in Nov 2025 did not cause the L1 to freeze, nor were any user funds frozen. The L1 was entirely operational, and any observer can see the blocks that were produced during this time. The Arbitrum bridge was automatically locked after the incident due to abnormal variation in account balances. As explained above, the Arbitrum bridge is not as secure as natively minted USDC, and therefore requires several conservative automated locking mechanisms as safeguards. The Arbitrum bridge’s locking mechanism is audited and open sourced, and the bridge is being deprecated with the transition to native USDC.

Claim: A single private key can set any oracle price instantly: no timelock, no limits

Misinterpreted: The author is likely mistaking the HIP-3 oracle updater logic with the validator-operated perps. HIP-3 oracle updates are indeed set by a single address, but this is up to the deployer to configure. The updater address need not be an EOA. For example, current HIP-3 deployers use a combination of MPC and CoreWriter architecture.

For validator-operated perps, multiple validators can submit oracle price updates. The final prices are a robust weighted median across major centralized exchanges. There is no timelock and no limits explicitly because these limits make the system less, not more, safe. The events of 10/10 show the danger to solvency if ADL is not accurately triggered in a timely manner during high volatility. Hyperliquid was one of the only venues without performance degradation or a network outage during this time. If Mango Markets or a similar protocol with oracle rate limits were active during 10/10, they would have likely accrued bad debt. Further decentralization will involve other validators actively running independent and open-sourced oracle update binaries.

Claim: 8 undisclosed addresses control all transaction submission

False: Some transactions are already sent directly from the validators. Some such as orders are not, in order to minimize MEV, but a future upgrade will incorporate this logic for all transactions in a mechanism that is both MEV- and censorship-resistant. The careful consideration of MEV is in response to trader and researcher feedback based on predatory behavior observed on other chains. There is almost unanimous agreement that toxic transaction ordering degrades the end user experience. Ultimately, the validator set is permissionless, and there is no guarantee that validators in the mainnet set are always fully aligned with the ecosystem. A major milestone in decentralization will be solving this problem, including a multiple-proposer block building setup.

Claim: There is a liquidation cartel with unfair advantages

Misinterpreted: Only HLP may backstop liquidate users, and HLP subvaults are the only addresses in this set. However, depositing into HLP is permissionless, so HLP is a community-owned liquidity vault supporting the protocol. The fact that HLP has privileges is no different from other protocol liquidity vaults.

Relatedly, all liquidations are first attempted against the order book, which handles the vast majority of liquidated positions without backstop liquidation. This allows users to keep any remaining collateral, and allows all other users to compete in providing the best price to the liquidation flow, benefitting the liquidated user.

Claim: There is a hidden lending protocol with $1M+ supplied and no documentation

False: Portfolio margin, borrow lend, and the HLP supplied value were all publicly announced and are currently in pre-alpha rollout. The current documentation can be found at https://t.co/vvE8EhpIhX and has been progressively fleshed out over the past several weeks.

Claim: ModifyNonCirculatingSupply allows changes to token supply

False: The full supply of HIP-1 tokens on HyperCore is fixed at deployment. The non-circulating supply is a purely informational number that can optionally mark addresses as “non-circulating” for display purposes. Whether an address is marked as “non-circulating” does not affect execution. This is an example of onchain information that might make more sense offchain, but is not a vulnerability.

Thank you to the author for spending the time to verify the execution of Hyperliquid. The fact that this investigation could be done at all proves the transparency and decentralization that Hyperliquid has already achieved. Concretely, Hyperliquid is the only major perps venue where the entire state and every input diff is transparently available to anyone running a node.

A similar analysis on any of the other top perp DEXs is impossible. For example, Lighter uses a single centralized sequencer whose execution logic and ZK circuits are unavailable. Aster uses centralized matching and even offers dark pool trading, which is only possible with a single centralized sequencer without verifiable execution. Other protocols with some open source contracts do not have a verifiable sequencer.

On Binance, Lighter, Aster, or similar exchanges, it is impossible for anyone other than the sequencer to see a full snapshot of onchain state including order books, positions, and other user information. The centralized sequencer can also upgrade its software without any constraints. On Hyperliquid, the entire state is onchain, which means there are 24 validators executing the same state machine under BFT consensus rules. There is plenty left to do on the journey towards greater decentralization, but it’s important to highlight just how far Hyperliquid and its ecosystem have come compared to competitors.

Decentralization is progressive, and Hyperliquid will ultimately be fully open sourced. Hyperliquid is the most transparent of all major venues, even though this leaks advantages to competitors (all of whom are closed source), who can copy Hyperliquid’s innovations more easily. We think this is the correct tradeoff to balance value accrual to the community, speed of innovation, and upholding the values of defi.

The HyperEVM execution is open source, and Sprites, an independent community member, maintains a full archival node that powers many important integrations. HyperCore will follow the same path as soon as it reaches feature completion.

[Chip.hl // Evgeny Yurchenko @chip1cr]

Don't have 5M volume and can't join TradeXYZ queue? No worries, Chip has got you covered.

Go to Based via https://t.co/3bv0J1ov5P and open account using your email. Deposit some USDC to XYZ and you're good to go.

Remember, first days since the start of any project are the most profitable points-wise. Don't wait for Unit to open exchange to everyone, be early. It is always rewarded handsomely.

[Chimpus @chimpus_]

buy $PURR.

- same immaculate conception as $HYPE, but with no team allocation and no future airdrop. (fully circulating)
- is a cat.
- fees paid in $PURR are burned.
- AF2 will buy again.
- is a cat.

$10.

[ostmn @o_stmn]

The moment everyone realizes they don’t have enough $PURR — the launch of Lighter's meme

[ostmn @o_stmn]

@derteil00 It’s the purrlimbo. Time doesn’t exist here

[Derteil @derteil00]

This time is different.

[ostmn @o_stmn]

@hypeconomist Arthur Hype

[ostmn @o_stmn]

@derteil00 The hard road was from $0.35 to $0.15
The easy road is from $0.15 to $0.015

Did I get it right?

[ostmn @o_stmn]

@hypnogaba @merts_eth 🫡

[Unit @unitxyz]

Spot ETH is live on Hyperliquid. Users may now deposit ETH directly from Ethereum Mainnet.

[Jason Choi @mrjasonchoi]

Interesting that Binance publicly supports Bybit after the $1B hack but actively sought to wreck Hyperliquid via Jelly listing

[Hypnogaba @hypnogaba]

NFTs are dead
but not NFTs on @HyperliquidX
@drip__trade is doing great work on constantly updating the platform and providing perks to degens.
aplha: buy and hold @HypersOnHL and @KittenswapHype
You will thank me later

[ostmn @o_stmn]

@Djangothedegen @HypioHL @HypersOnHL Same

[ostmn @o_stmn]

@kirbyongeo @animecoin @0xbeatsai @buffer @CurveFinance @D2_Finance @deBridgeFinance @DexariDotCom @drip__trade @fanappX @thefarmdotfun @felixprotocol @harmonixfi @hlnames @hyenahl

[jeff.hl @chameleon_jeff]

Execution

Extremely proud of the community and team for the smooth launch of the HyperEVM. The upgrade happened amidst billions of dollars of daily volume, where the majority of defi derivatives trade. There was no downtime, and no performance degradation after the launch.

The UX of trading is still so seamless that many users assume the HyperEVM is a separate chain! To be clear: the HyperEVM and the existing native Hyperliquid financial system are one composable state.

The safest way to upgrade this uniquely complex system is a gradual rollout. Precompiles and other L1 interactions will build upon the sturdy foundation of the initial HyperEVM release. This will unlock an entirely new class of performant defi applications, but more on that later.

Right now I want to focus on the execution of the launch. A bug in HyperEVM logic or an unoptimized code path would've crippled the entire blockchain, affecting hundreds of thousands of users and billions in open interest.

This was a massively challenging launch: a jet's engine was flawlessly changed mid-flight.

--

Philosophy

The HyperEVM launch stayed true to Hyperliquid’s “no insiders” principle. Hyperliquid has always embodied the original ethos of crypto: no investors, no paid market makers, no fees going to any company. The HyperEVM launch is yet another example that integrity and fairness are the pillars of Hyperliquid.

The tradeoff of a fair launch is that things are a bit messy to start. Tooling might not be there from day one. Builders need to familiarize themselves with the tech. But these short term obstacles are nothing compared to the long term value of fairness. No one had a head start or unfair advantages. I’m impressed that some teams deployed dapps, tooling, and analytics within hours of the HyperEVM release, a testament to the strength of the builders and community.

Hyperliquid will eventually be the credibly neutral infrastructure that houses all of finance. Looking back, the L1 launch, HYPE genesis, and HyperEVM launch will all be important milestones. Success is path dependent, and there can be no blemishes on the fair trajectory towards the final state.

The HyperEVM is a clean slate. The community is hungry for quality applications. Where else in the world is there such an imbalance between supply and demand for applications built? Fast, general purpose chains are nothing new. But on Hyperliquid, builders can plug into a mature, liquid, and performant onchain economy with real users.

I've noticed a pattern that builders, traders, and communities who "make it" on Hyperliquid are those who call Hyperliquid home. Legacy players don't win just because of their credentials. Newcomers have equal opportunity to win by challenging the status quo and seizing the opportunities. There are empires to be built on the HyperEVM, and the community welcomes builders with open arms.

Hyperliquid

[ostmn @o_stmn]

Hyperliquid.

[Peter / 1k(x) @pet3rpan_]

Don't waste time begging VCs for money this year.

Just build a strong community and raise directly from members instead.

Capital will follow the attention of the strongest communities.

[Charlie @0xBroze]

Still tough to believe HyperEVM mainnet is here. Launch and test in practice. Two main pieces that I am still seeing we need on the DeFi side are:

1. @safe deployment for protocol teams to feel comfortable launching with secure infrastructure for parameter upgrades via multisigs

2. @circle native USDC deployment on the EVM side. This is still a significant holdup for any sort of AMM or lending protocol to go live, which leads to a hold up on the use cases for liquid staking and more. Native USDC on the EVM side is crucial for composability between EVM and spot.

Let's get these set soon and get capital efficiency accelerated on HL.

[joe @Joe_XBT]

That's weird

there isn't any abnormal volume or buying happening prior to the announcement for HyperEVM going live

is this normal?

[Hyper Foundation @HyperFND]

The HyperEVM is live. This is a major step toward the vision of housing all finance by bringing general-purpose programmability to Hyperliquid’s performant financial system. The initial mainnet release of the HyperEVM includes:

1. HyperEVM blocks built as part of L1 execution, inheriting all security from HyperBFT consensus.
2. Spot transfers between native spot HYPE and HyperEVM HYPE. As a reminder, HYPE is the native gas token on the HyperEVM.
3. A canonical WHYPE system contract deployed at 0x555...5 for defi applications. The source code can be found at https://t.co/pXmVRNpqov

Effective immediately, the bug bounty program will pay mainnet bounty amounts for reports within the scope of the points above. See https://t.co/KamzgZAYWh for details.

For API and wallet users: the mainnet HyperEVM has chain ID 999. A JSON-RPC server for the mainnet HyperEVM is hosted at https://t.co/BB0W8L4cXp. Node operators and other builders are encouraged to host their own RPC servers.

Tooling and analytics around mainnet HyperEVM may not be polished on day one. However, there are many talented builders working to solve these developer pain points. To help with these efforts, raw HyperEVM block data is streamed realtime to S3 so that running a node is not required to index the HyperEVM. More technical details can be found here: https://t.co/h6GeFo8HIl

General ERC20 native transfers and precompiles will be enabled on a future network upgrade. Any ongoing feedback for these features on testnet is greatly appreciated. While these features are implemented on testnet, the mainnet releases are staggered for minimal disruption to existing users on the L1. The HyperEVM is composable with the L1 state while not affecting the low latency trading experience of existing users.

Thank you to all the builders and users who have shared feedback on testnet so far. It will be exciting to see new applications leveraging and building upon the existing onchain financial system of Hyperliquid.

[ostmn @o_stmn]

Effectively, this places $HWTR in the same segment as $HFUN and $LIQD

[Hedgewater @HedgewaterDAO]

Hedgewater ETFs around the corner as promised!🛠️

A small preview of what's to come → capital formation native to Hyperliquid EVM.

- Raise capital without the need for VCs—true to Hyperliquid's ethos.
- Capital raised by teams will be used to automatically snipe ticker, handle market making on spot via HIP-2, and fund project development
- One of the first dapps to use non-custodial native USDC on Hyperliquid.

[ostmn @o_stmn]

@HedgewaterDAO Im a partner of Hedgewater Associates