HypervaultFi Faces $3.6M Rug Pull Allegations - Investor Funds Vanish Overnight

Another day, another DeFi project leaves investors holding empty bags. HypervaultFi joins the growing list of protocols accused of executing a classic rug pull—this time to the tune of $3.6 million.

The Vanishing Act

Liquidity pools drained overnight, token values plummeted 98%, and social media channels went dark. The classic triple-whammy that screams 'exit scam' to anyone who's been in crypto longer than a bull market.

Pattern Recognition

Anonymous team? Check. Overhyped APY promises? Double-check. The usual red flags waved vigorously, but greed often blinds even seasoned investors to the obvious.

Regulatory Whack-a-Mole

While traditional finance regulators scramble to understand DeFi mechanics, bad actors continue exploiting the anonymity and speed of blockchain transactions—proving once again that in crypto, due diligence isn't just recommended, it's survival.

Another $3.6 million lesson in 'if it seems too good to be true...'—but somehow these lessons keep costing more than an MBA from Harvard.

HypervaultFi did not affect the wider Hyperliquid ecosystem

HyperEVM and Hyperliquid remain safe, though still containing inherent vault risk. Previous cases of drained vaults or aggressive trading have not been compensated, as depositing into vaults is a personal risk of crypto finance. 

The vault was drained of HYPE tokens, which were then moved through DeBridge and sold, as the main draining wallet reveals. The Hyperliquid community warned that the rug pull event was not a sign that the leading perpetual DEX was inherently flawed. 

For now, the rug pull on the high-risk vault has not further undermined HYPE, as the token still traded around $42.53 after the attack. 

Hypervault promised point farming, airdrop

Hypervault was behaving as a usual DeFi app, communicating with its supporters until the last minute. The project shared long-term plans for lowering the yield and becoming more sustainable. 

HypervaultFi even promised to launch a token before the end of the year. One of the project’s founders, 0xnick, mentioned the product was still in the early stages and had a long development ahead. Users were also encouraged to use other HyperEVM protocols like Hyperlend and HyPurrFi to farm points. 

Just before the rug pull, the protocol was preparing for its first official audit, creating a reputation of safety. However, analysts noted that the reported auditors did not even know about the project, raising the first red flags. 

Hyperliquid’s HyperEVM has prepared to expand its ecosystem with new points and airdrop projects. The current list of projects is spread across several tiers, and point farming may contain varying levels of risk. Hypervault was not among the tracked projects, and mostly relied on its high-yield strategy.

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