A large, coordinated attack on Hyperliquid's HLP vault across multiple financial markets would lead to catastrophic mass liquidations for HLP depositors, a bank run, and secondary losses for protocols holding HYPE tokens as its market cap reprices.
"If a sufficiently large and coordinated attack were to hit the HLP vault across multiple Fin markets simultaneously, the cascade would be catastrophic. Mass liquidations across all HLP depositors with thin liquidity further, creating a self-reinforcing bankrun dynamic where confidence collapse drives withdrawals that make the platform even more vulnerable to subsequent attacks. Protocols holding hype as treasury assets or collateral face secondary losses as the token's approximately $10 billion circulating market cap reprices."
