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      Papertrade Addresses Price Manipulation Concerns Amid Protocol Adjustments

      Papertrade has officially responded to allegations of price manipulation and vulnerabilities within its trading protocol. The company emphasized that small orders have never been prioritized equally with larger ones, as this could lead to congestion and detrimental effects on the trading experience. The design of the fair launch aimed to be inclusive while maintaining a functional queuing mechanism to prevent junk trading.

      The recent attempts to manipulate Bitcoin and Ethereum prices on the Hyperliquid BBO platform were attributed to initially relaxed position limits during the launch phase, rather than flaws in the trading mechanism itself. Papertrade stated that these limits were intentionally set loosely to manage congestion, which allowed for such occurrences. As the trading environment stabilizes, the company has begun to tighten position limits both on-chain and at the relay level to enhance security against manipulation.

      Papertrade acknowledged that while manipulation attempts can occur, the focus is on making such actions economically unviable. The company aims to adjust parameters to a level where the potential for profit from manipulation is minimal, thereby reducing the incentive for such activities. The adjustments are part of an ongoing effort to improve the trading experience and ensure the integrity of the platform.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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