Papertrade perpetuals exchange launches on Hyperliquid HyperEVM and open interest drops 93.7% in first weekend
Papertrade launched on Hyperliquid's HyperEVM with 1000x leverage, then saw open interest fall from $11 billion to $693 million and TVL drop from $118 million to $70 million.
Why it matters
The rapid collapse in open interest and TVL suggests the 1000x leverage model may not sustain liquidity after initial speculation. Complaints about transaction priority and manipulation attempts raise questions about the platform's operational resilience.
Key facts
Papertrade launched on Hyperliquid's HyperEVM on October 10
Reported by Bankless
Papertrade uses a Martingaler LP pool that starts empty and fills from traders' losses
Reported by Bankless
Open interest fell 93.7% from $11 billion to $693 million in roughly 24 hours
93.7 %Reported by Bitcoin.com News
Traders reported complaints about transaction prioritization and attempted price manipulation
Reported by Bitcoin.com News
What happened
Papertrade, a perpetuals exchange co-founded by traders Jez and Blurr, launched on Hyperliquid's HyperEVM on October 10 with up to 1000x leverage and a Martingaler LP model where a shared USDC pool fills from traders' losses. Bitcoin.com News reported that within roughly 24 hours, open interest plunged 93.7% from $11 billion to $693 million, while total value locked fell from $118 million to $70 million, a $48 million contraction. Only $9.17 million remained backing outstanding positions. Traders raised complaints about transaction prioritization and attempted price manipulation. Bankless described the mechanics before launch; Bitcoin.com News and Crypto News reported the post-launch collapse.
How the story developed
- Update
Papertrade opens pre-deposits ahead of live trading
Pre-deposits opened October 9 with $10 minimum plus $1 activation fee
- First report
First report by Bankless
What to Know About Papertrade's Launch
- Update
Bankless publishes pre-launch analysis of Papertrade mechanics and rollout plan
Describes 1000x leverage, Martingaler LP model, PAPER token, and October 10 launch date
- Update
Papertrade goes live on HyperEVM
Live trading begins October 10, anniversary of previous year's crypto crash
- Official statement
Official statement from Bitcoin.com News
Papertrade’s Wild Weekend Ends With 93.7% Open Interest Wipeout
- Update
Bitcoin.com News reports 93.7% open interest collapse and $48 million TVL drop after first weekend
Open interest falls from $11 billion to $693 million; TVL from $118 million to $70 million; $9.17 million backing remaining positions
- Update
Crypto News syndicates Bitcoin.com report on Papertrade's weekend wipeout
Repeats open interest and TVL figures, adds trader complaints about transaction priority and manipulation attempts
How coverage built up
Independent sources over time, counted the way the consensus panel counts them: a republication of a wire story does not move the line.
- 9 Oct 2026, 18:26 UTC: Bankless — 1 independent source, 1 reports
- 11 Oct 2026, 22:18 UTC: Bitcoin.com News, official — 2 independent sources, 3 reports
Affected entities
Original sources
| Publisher | Report | Role | Published |
|---|---|---|---|
| Bitcoin.com News Company, official | Papertrade’s Wild Weekend Ends With 93.7% Open Interest Wipeout | Independent | |
| Bankless Crypto media | What to Know About Papertrade's Launch | Original | |
| Bankless Crypto media | 🏴 Papertrade's Launch Weekend | Independent | |
| Crypto News (CryptoNews.net) Aggregator | Papertrade's Wild Weekend Ends With 93.7% Open Interest Wipeout | Syndicated |
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