Hyperliquid Faces Security Concerns Following North Korean Hacker Activity

The decentralized platform experiences record outflows as experts warn of vulnerabilities tied to its validator setup.

Reports indicate that North Korean hackers have been active on the Hyperliquid platform, allegedly probing for potential security weaknesses.
The platform's reliance on just four validators has raised alarms about its susceptibility to attacks, with experts suggesting these validators may lack robust security protocols.
Hyperliquid saw record-breaking outflows exceeding $500 million in a single day, as users moved funds in response to the reported risks.
The platform's developers have denied any exploit or loss of user funds, but blockchain analysts remain skeptical, citing structural vulnerabilities in its setup.
Hyperliquid's native token, HYPE, has experienced significant volatility, plunging 21% following the revelations about potential security threats.