Hypervault Finance fell victim to a suspected $3.6 million fund drain, with assets routed to Tornado Cash and all project communication channels offline.
What Happened?
Roughly $3.6 million in cryptocurrencies were drained from Hypervault Finance, a yield farming platform within the Hyperliquid ecosystem, and sent to crypto mixer Tornado Cash in what has been labeled an “abnormal withdrawal.”
According to reports from blockchain security firm PeckShield, the funds were first bridged to Ethereum before being forwarded to Tornado Cash—a service often used to obscure transaction trails.
Hypervault Website and Social Profiles Disappear
Following the incident, the Hypervault Finance website and its Discord, X (Twitter), and other social accounts became inaccessible.
Security firm CertiK published the wallet addresses linked to the suspicious withdrawals.
A Promising Platform With Rapid Growth
Hypervault had gained popularity among yield farming investors by offering:
- Annual yields up to 76% on stablecoins
- Up to 95% returns on HYPE liquidity
Just days before the incident, the project announced it had surpassed $5 million in TVL (Total Value Locked)—a sign of growing user confidence.
Crossing this threshold signals that Hypervault is becoming a core layer of liquidity aggregation within the HyperEVM ecosystem
read a now-deleted tweet from the team.
At the time of the disappearance, the platform had $6.01 million in TVL, according to DeFiLlama, which has now marked the project as a “rug pull”—a term used when developers withdraw user funds and abandon the platform.
Impact on the Hyperliquid Ecosystem
Hypervault was part of the broader Hyperliquid ecosystem—a decentralized exchange for perpetual futures trading, built on its own Layer-1 blockchain. According to DeFiLlama, Hyperliquid currently holds about $2 billion in TVL.
In recent weeks, the ecosystem had drawn attention from institutional players like VanEck and StateStreet with plans to launch USDH, a stablecoin aligned with the Hyperliquid protocol.
Myriad—a prediction market managed by Decrypt’s parent company DASTAN—showed that users had grown increasingly bearish on the HYPE token, placing an 87% probability it would fall to $39 rather than rise to $69.
At the time of writing, HYPE is trading at $41.61, a modest 0.9% gain on the day according to CoinGecko data.
Conclusion
The Hypervault incident highlights the risks associated with high-yield, low-transparency platforms. The disappearance of funds and the project’s sudden offline status point to a likely rug pull. The event casts a shadow over the entire Hyperliquid ecosystem, just as it seeks institutional credibility.
Frequently Asked Questions
Find answers to the most common questions below.
Roughly $3.6 million was drained from the platform and sent to Tornado Cash. The project’s website and social accounts went offline shortly after.
While not officially confirmed, DeFiLlama has flagged Hypervault as a “rug pull” based on the fund movement and sudden project disappearance.
The incident raises trust concerns just as Hyperliquid was gaining institutional attention, especially with its planned USDH stablecoin launch.
This article is for general informational purposes only and is not intended to be, and should not be construed as, legal or investment advice. Crypto-assets are highly volatile, so only invest funds that you are willing to lose and use your own research and risk management.
