The attack on Hyperliquid failed: CZ-linked exchange Aster lost 4 times more than its victim
Competition in the decentralized derivatives market has entered an open phase. A trading address, allegedly funded through the Aster platform, attempted to artificially crash the liquidity of its direct competitor, Hyperliquid. Aster is publicly backed by Binance founder Changpeng Zhao (CZ), which gave this confrontation particular resonance. However, as events unfolded, the attacker not only failed to achieve their goal but suffered losses four times greater than their victim.
Chronicle of a Failed Manipulation
The attack attempt was recorded by analysts on June 16. According to blockchain analysis, the address belonged to a group of wallets that had withdrawn $2.3 million from the Aster platform a week earlier. Approximately 20 hours before the incident, this wallet transferred $635,000 to Hyperliquid. Immediately after, the trader began aggressively opening a long position on the Fartcoin token.
The attack mechanics were classic for Hyperliquid: accumulating around 20% of open interest in a low-liquidity asset, artificially inflating the price through spot market purchases, triggering protective liquidations of large positions, forcibly transferring these positions to the HLP liquidity pool, and mass dumping tokens, leaving the pool with massive losses.
However, this time the strategy failed from the very start. After four hours of continuous buying, the attacker's wallet was fully liquidated. The organizer did not even manage to reach the price inflation phase. As a result, the attacker suffered financial damage significantly exceeding the losses of the targeted platform. The HLP pool lost approximately $130,000, while the attacker's loss amounted to $540,000.
Context of the Confrontation: Aster vs. Hyperliquid
Aster is a multi-chain DEX without mandatory user verification. The project was created through the merger of the Astherus and APX Finance platforms, with support from YZi Labs. The exchange offers clients massive leverage — up to 1000x.
Changpeng Zhao himself openly calls this project Hyperliquid's main competitor. Unsurprisingly, the businessman has been repeatedly accused of orchestrating attacks on the platform through Aster. This incident only confirms that the battle for dominance in the decentralized derivatives market is becoming increasingly fierce and technologically advanced.
Cryptalist Analytical Commentary: This failed attack on Hyperliquid demonstrates not only the protocol's resilience but also a serious miscalculation by the Aster team. Attempting to use an old manipulation scheme against a more advanced liquidity system resulted in a costly fiasco. The decentralized derivatives market is becoming an arena where only those capable of adapting faster than their competitors survive. For now, Hyperliquid proves that its defense mechanisms work more effectively than the aggressive strategies of its opponents.