North Korean hackers reportedly lost over $700,000 while trading on the crypto derivatives platform Hyperliquid, raising concerns about potential security vulnerabilities. The hackers experienced a significant loss after liquidating a position that turned $476,489 into just $18,187 in a matter of days. This incident coincided with Hyperliquid facing its largest-ever outflow, with reports indicating that approximately $256 million fled the platform amid fears of hacking activity. Hyperliquid's native token, $HYPE, saw a dramatic decline, dropping by 25% as traders rushed to withdraw their funds. Despite these concerns, Hyperliquid Labs has denied any exploit, asserting that all user funds are secure and that there have been no vulnerabilities detected. The platform's trading volume surged to $11.5 billion shortly before these events, but the current atmosphere of uncertainty has led to a cautious response from the community and investors alike.