An anonymous trader on Hyperliquid has emerged as the platform’s largest losing whale, staggering with over $40 million in losses within a month based on blockchain analytics.
Data from Lookonchain shows the trader’s high-leverage activities, including a nearly $40M loss on Hyperliquid’s native token, HYPE, after offloading roughly 900,000 tokens which then surged in value.
Further losses totaled $35 million on an Ethereum (ETH) position, followed by an additional $614,000 lost after switching to a short position. The trader’s Bitcoin (BTC) holdings are also down by nearly $2 million unrealized.
Despite these setbacks, the whale continues to hold a significant $152 million leveraged position at almost 29 times leverage, as per recent Hyperdash reports.
Kinto Token Plummets 81% as ETH Layer-2 Project Winds Down Following Hack
Kinto Network’s native token has plunged more than 80% after the team announced the closure of its Ethereum layer-2 blockchain scheduled for September.
The project cited deteriorating market conditions and failed fundraising efforts as reasons for the shutdown. The team had been operating without salaries since July.
This decision followed a $1.6 million hack exploiting a vulnerability in the ERC-1967 Proxy standard, further straining its financial viability.
While the project attributes the shutdown to this breach and financial challenges, community members noted its exceedingly high yields, including a 130% annual return on stablecoins, even post-hack.
SwissBorg Loses $41 Million SOL in Hack Via Third-Party API
Crypto exchange SwissBorg announced a loss of nearly $41 million worth of Solana (SOL) tokens due to an API vulnerability with its staking partner, Kilin.
Approximately 193,000 SOL tokens were stolen from the platform’s Earn program, though SwissBorg confirmed that its main app and other Earn products remained unaffected.
Despite the substantial loss, SwissBorg reassured users of its strong financial health and ongoing daily operations. Affected users will be contacted directly.
CEO Cyrus Fazel emphasized that while the hack involved a significant sum, it does not jeopardize the platform’s stability.
Ethereum Layer-2 MegaETH Launches Yield-Bearing Stablecoin
MegaETH, an Ethereum layer-2 protocol supported by Vitalik Buterin, unveiled plans for a yield-bearing stablecoin aimed at innovating layer-2 business models.
Partnering with Ethena, which manages over $13 billion in total value locked, the USDm stablecoin is designed to leverage reserves invested in BUIDL and BlackRock’s tokenized US Treasury bill fund.
The yield generated will subsidize sequencer fees, thereby lowering costs related to publishing transaction batches on the Ethereum mainnet.
MegaETH co-founder, Shuyao Kong, highlighted that this stablecoin model intends to reduce user fees and enhance application design possibilities.
Bubblemaps Detects Largest Sybil Attack in Crypto History on MYX Airdrop
Blockchain analytics firm Bubblemaps revealed what may be the largest Sybil attack ever observed in the crypto space, identifying 100 funded wallets that claimed $170 million in MYX tokens during a recent airdrop.
Their investigation found these wallets received near-identical BNB amounts from OKX within minutes of each other, despite showing no prior activity before simultaneously claiming the airdrop.
The attack raises concerns as MYX reached a $17 billion fully diluted valuation, prompting questions about the integrity of such token distributions.
A Sybil attack involves a malicious actor creating multiple fake identities to manipulate decentralized networks.
DeFi Market Weekly Overview
According to data from Cointelegraph Markets Pro and TradingView, the majority of the 100 largest cryptocurrencies by market cap ended the week with positive momentum.
MYX Finance (MYX) dominated with an astonishing 1,100% gain over seven days, emerging as this week’s biggest gainer. Following closely, Worldcoin (WLD) surged over 90%.
Stay tuned for next week’s comprehensive update on key DeFi trends, insights, and developments shaping the future of decentralized finance.