Odaily Planet Daily reports that PaperTrade posted on X that its trading volume exceeded that of the stock market within the first 6 hours after launch; one day after launch, PaperTrade became a platform supporting 1000x leverage, with a liquidity pool (LP) size of $5 million and $25 million in rewards distributed to stakers.
In response to community concerns regarding fair launch mechanisms and market manipulation of BTC/ETH, PaperTrade stated that due to the need to prevent front-end congestion and spam request attacks, small orders cannot be granted the same priority as large orders; however, the team has maximized fairness within these constraints. The manipulation of BTC/ETH by some users through the Hyperliquid BBO mechanism was not an oversight in design, but rather a consequence of initially setting a high open interest cap (OI cap) to alleviate queue pressure at launch. As traffic has decreased, the team has begun tightening position limits at both the on-chain and relayer levels to reduce opportunities for manipulative profit.
PaperTrade added that no system can completely avoid manipulation, and the goal is to adjust parameters so that attacks are nearly unprofitable; it noted that in the incident, some users ultimately returned most of their profits to the platform due to repeated attempts at manipulation.