HyperVault Triggers Rug Pull Alarm as $3.6M Disappears Overnight

Another day, another DeFi project vanishes with investor funds—proving once again that 'trustless' systems still require trusting someone.

The Vanishing Act

HyperVault's smart contract now shows a zero balance after $3.6 million in digital assets evaporated from its treasury. The project's social channels fell silent within hours of the funds moving to untraceable wallets.

Pattern Recognition

Blockchain analysts spot the classic rug pull signature: liquidity drained, token price cratered 98%, and developers ghosting their community. The protocol's token now trades at fractions of a cent after hitting its all-time high just last week.

Due Diligence Deficit

Investors poured millions into unaudited code despite multiple red flags—a recurring theme in crypto's wild west where yield farming often yields exactly what you'd expect from unregulated gambling.

The fallout reinforces what seasoned traders know: if returns seem too good to be true, they probably fund someone's tropical retirement.

What is Hypervault?

Hypervault Finance promoted itself as a decentralized vault protocol offering cross-chain liquidity and flexible yield opportunities. The project marketed itself as a safer way to manage assets across networks, targeting investors looking for passive income streams. 

“Hypervault is the premier hub for yield on HyperEVM,” it claimed. Its connection to Hyperliquid, a rising player in the perpetuals exchange space, had given it added visibility in the market. However, those promotions may have been a facade, as the abrupt disappearance of funds is now calling that credibility into question.

Adding another LAYER of suspicion, Hypervault’s official X account vanished alongside the funds, and no statement has been issued at the time of writing.

Rugpulls remain a risk in DeFi

Incidents like this highlight the persistent risks in decentralized finance. Rug pulls are a common exploit in the industry, where developers drain liquidity and abandon a project.

This trend has cost investors billions over the years. In some cases, even celebrity-backed or influencer-promoted projects have ended the same way, marketed as legitimate opportunities to attract retail investors, only for founders or promoters to quietly exit once liquidity peaks. These tactics often leave ordinary investors empty-handed, while those behind the schemes walk away with the proceeds.

So far this year, several cases have been recorded. The most significant to date came in February with MetaYield Farm, which drained $290 million from investors before vanishing.

Another such major incident was the fall of MANTRA (OM), a DeFi protocol that collapsed in early 2025. In this event, insider wallets quickly moved $227 million in tokens, crashing OM’s price by over 90% and resulting in total investor losses of $5.5 billion. Founders denied wrongdoing, but wallet evidence and the rapid shutdown signaled classic rugpull patterns.

Until there is clarity from HyperVault’s team, the situation remains unresolved. The use of Tornado Cash, while not definitive proof, is a common tactic in cases where teams attempt to hide transactions after pulling funds, adding weight to speculation that the protocol’s operators may have walked away with users’ funds.

For now, the unusual activity suggests that Hypervault may be the latest rug pull in the DeFi sector.