Hyperliquid Wallet Hacked as Secret key Leak Leads to $21 Million Loss
A wallet linked to the decentralized trading platform Hyperliquid has been hacked, resulting in the loss of approximately $21 million in cryptocurrency later than a Secret key leak.
Blockchain security firm confirmed that the attacker gained unauthorized access to the wallet by compromising its Secret key, rather than exploiting Hyperliquid’s protocol or smart contracts. The firm noted that the incident was isolated to a single user and did not involve any breach of the Hyperliquid platform infrastructure.
$21 Million in Assets Drained
On-chain data shows that the stolen funds included 17.75 million DAI and 3.11 million MSYRUPUSDP, which were swiftly transferred and bridged to ETH. The hacker then dispersed the assets across multiple wallet addresses in a bid to obscure the transaction trail — a tactic commonly used to evade detection and asset recovery.
PeckShield’s analysis revealed that the compromised wallet had recently closed a significant trading position on Hyperliquid, suggesting that the attacker might have been monitoring its activity before the theft occurred.
User Security Practices Under Scrutiny
While Hyperliquid itself remains secure, the incident highlights persistent vulnerabilities tied to Secret key management and self-custody risks. Experts warn that even highly secure decentralized platforms cannot protect users from breaches caused by poor key storage practices or social engineering attacks.
A stronger protective measures, such as hardware wallets, multi-signature setups, and the use of cold storage for large holdings. Users are also encouraged to remain cautious of phishing attempts and malware designed to capture Secret keys or viewd phrases.
As of press time, no official recovery efforts have been announced, though blockchain investigators continue to monitor the movement of the stolen funds across networks.
Hyperliquid Under Pressure
Hyperliquid is , with platforms like Aster and Lighter gaining traction. The decline comes amid growing rivalry in on-chain trading volumes, suggesting traders may be shifting toward competitors offering better liquidity and incentives.
In response, , allowing stable asset deployers to designate their tokens as quote assets without central approval. The upgrade aims to attract new projects and restore momentum by decentralizing listings and expanding trading pairs—a strategic move to counter market losses and reignite community participation.
