A trader lost $979,000 on Papertrade, a new perpetual futures exchange on HyperEVM. Yet he ended up $17,800 in profit. How? Papertrade rewards losing traders with PAPER tokens. These tokens can't be traded or transferred, but they can be staked to earn USDC. Where does that USDC come from? Other traders' losses. Papertrade plays against its customers. When someone loses money, the platform keeps 100% of that loss and shares part of its revenue with PAPER stakers. So the trader who lost almost $1 million has already recovered his losses, made $17,800 on top, and still holds his PAPER tokens. He can keep earning a share of other people's losses. The more traders lose, the more PAPER stakers can earn. Early traders may even have an incentive to bring in new customers, hoping their losses will cover their own. Would you buy a token that pays you every time someone else loses money?