The Hyperliquid ecosystem is in the spotlight after one of its projects, HyperVault, was accused of rug-pulling users for approximately $3.6 million.
Blockchain security firm PeckShield flagged unusual transactions on Friday, sparking alarm on social media.
HyperVault Social Channels Wiped Amid Rug Pull Suspicions
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According to PeckShield, the suspicious activity began with a large withdrawal from HyperVault, a yield optimization protocol built on Hyperliquid.
The assets were bridged out of the network to Ethereum, converted into ETH, and eventually funneled into Tornado Cash, a popular coin mixer often used to obscure fund flows.
In total, 752 ETHwere deposited into Tornado Cash, raising strong suspicion of a deliberate exit scam.
The fallout escalated quickly when HyperVault’s social media accounts were deactivated, including its X (Twitter) profile and Discord server.
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HyperVault X Account Deactivated. Source: TwitterHypingBull, a Hyperliquid community member, views this as confirmation after warning about the protocol weeks earlier.
On September 4, they highlighted irregularities in the project’s audit claims, noting that while developers said audits were underway, at least two firms denied any involvement.
Despite these warnings, HyperVault continued to attract users, leveraging its branding as a password manager and digital vault for businesses.
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The platform also promoted itself as a multichain yield optimization hub. With roughly $5.8 million in total value locked (TVL), the project had positioned itself as a key DeFi player within Hyperliquid’s ecosystem.
HyperVault TVL. Source: DefiLlamaSentiment is that HyperVault TVL (total value locked) may have been inflated. If this is not the case, crypto markets may have just witnessed the largest rug pull on HyperEVM.
What HyperVault Users Should Do
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Following the latest development, the Hyperliquid proponent urged HyperVault users to revoke all the permissions on the wallet used to connect to the website.
While Hyperliquid itself, a high-performance Layer-1 blockchain focused on perpetual futures and spot trading, remains unaffected, the HyperVault scandal risks denting trust in its broader ecosystem.
Critics argue that unaudited third-party protocols can undermine confidence in otherwise strong infrastructure.
As of this publication, neither Hyperliquid nor HYPEconomist had commented on the incident.
Source: https://beincrypto.com/hyperliquid-hypervault-rug-pull/
