News linked to both this project and an event.
Euler Finance announced it will take over the maintenance and operation of the Euler contract stack known as Mewler under HypurrFi on the Hyperliquid EVM. The relevant infrastructure is undergoing a smooth transition, with Clearstar Labs continuing to serve as the risk manager for the Prime, Yield, and Earn vaults. HypurrFi Scale and Pooled Markets are scheduled to gradually wind down and undergo orderly liquidation over the coming weeks. However, all existing markets remain solvent and fully operational, with no security vulnerabilities or emergency parameter adjustments.During the migration process, new borrowing functionality for some Pooled assets has been frozen, but HYPE, USDC, and USDT0 can still be used for liquidity provision to allow borrowers to gradually unwind their positions. Euler emphasized that its isolated lending architecture on HyperEVM will continue to serve as core infrastructure, jointly maintained by Euler and Clearstar Labs.The HypurrFi team stated that user deposits, positions, and collateral assets remain fully secure. This adjustment is an active strategic migration, not a security incident or protocol failure. According to the plan, Euler Prime and Yield markets will become the primary entry points for lending and yield markets on HyperEVM moving forward. The HypurrFi brand will be gradually phased out, with related support services closing after May 28. Full market liquidation is expected to be completed by July 15, 2026.HypurrFi also reminded users to be aware of risks and fraudulent links during the migration process, to operate only through official channels, and to use the built-in migration tools to transfer Pooled positions to Euler Prime or Yield markets.
On-chain investigator ZachXBT replied that PolyArb is a fake prediction market product whose website contains a wallet-stealing script. Previously, PolyArb claimed on X that the Hyperliquid HIP-4 outcome market achieved $6.15 million in daily BTC trading volume within 48 hours. William LeGate, Head of User Growth, questioned its claims regarding Polymarket’s fee structure. ZachXBT warned that replying to the relevant account could generate further exposure and increase the number of potential victims.
According to on-chain analyst PeckShield (@PeckShieldAlert), the attacker established a $15 million long position in $Fartcoin (totaling 145.24 million tokens) on Hyperliquid using four wallets. Subsequently, in a low-liquidity environment, the attacker deliberately triggered a “suicidal” liquidation, forcing activation of the ADL (Automatic Deleveraging) mechanism. As a result, the HLP liquidity pool was compelled to absorb toxic assets, generating bad debt and incurring approximately $3 million in paper losses. The HLP has lost roughly $1.5 million within the past 24 hours. PeckShield noted that the attacker likely executed cross-market hedging strategies in advance, meaning the actual net profit may significantly exceed the reported paper loss figure.