The DeFi project Hypervault, linked to the Hyperliquid ecosystem, is under fire after a suspicious $3.6 million withdrawal sparked fears of a full-blown rug pull.
According to blockchain analytics firm PeckShield, funds were bridged from Hyperliquid to Ethereum, converted to ETH, and then 752 ETH (~$3M) was funneled into Tornado Cash—a privacy tool often used to obscure transaction trails.
Within hours, Hypervault’s official website, X (Twitter) account, and Discord server went dark, deepening suspicions of foul play.
Despite marketing itself as an “auto-compounding vault” promising passive returns from lending and trading fees, the project had long faced warnings from the crypto community over lack of audits, opaque mechanics, and unrealistic yield promises.
This incident adds to a troubling trend: rug pulls accounted for 65% of all DeFi scams in 2024, with total losses from such schemes and Ponzi operations hitting $4.6 billion. The average haul per scam has now climbed to $510,000 in 2025—up from $410,000 in 2023.
As trust erodes, pressure mounts on Hyperliquid to tighten oversight of projects built on its platform—before more users get burned.
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