• Reports emerged of Hyperliquid being exploited by North Korean hackers.
• Hyperliquid denied any such vulnerability, adding that all funds are safe.
• HYPE token has surged by 10% in the past 24 hours.

Hyperliquid (HYPE), a blockchain protocol focused on the performance of decentralized finance (DeFi) applications, has witnessed a whopping $256 million in outflows following reports of North Korean hackers trading on the platform. However, HYPE, the native cryptocurrency of the Layer 1 network, has seen a  massive 10% gain in 24 hours.

North Korean hackers do not have to engage with the users’ funds in order to breach security, highlighted Taylor Monahan, a security expert at prominent software crypto wallet Metamask, while adding that there are significant vulnerabilities in Hyperliquid’s system. It is important to note that DPRK’s Lazarus Group is known for actively exploiting digital asset protocols.

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In response to the news, Hyperliquid denied being exposed to North Korean hackers, adding that all the users’ funds are accounted for. The platform confirmed that “no vulnerabilities have been shared by any party” because there is a massive bounty program for developers and coders who report bugs in the protocol. 

Interestingly, many people on X (formerly Twitter) discussed the possibility of North Korean hackers not touching the users’ funds but using the protocol for their own goals. Others noted the similarity in Hyperliquid denying any vulnerability and the collapse of Do Kwon’s Terra ecosystem and crypto lending platform Celsius.

HYPE Token Price Action

As the broader digital asset market turned bullish, except Bitcoin which trades at $94K, HYPE also surged above the $30 price tag after a 10% price surge in the past 24 hours. The cryptocurrency aims to enter the top 20 with a market cap of $8.12 billion and has gained 836.86% in the last 30 days.

The 4-hour chart below remains bullish for Hyperliquid while the Relative Strength Index (RSI) reads a value of 53.19 which means that the buying pressure for the HYPE token remains higher than the selling pressure. The gradient of the line suggests that a retest of $35 might be possible in the near future.