Papertrade.xyz Draws $118M in Deposits With Up to 1000x Leverage

The striking feature is the collateral-to-open-interest mismatch: roughly $11 billion in positions resting on $54 million of collateral implies a system where a small adverse move can cascade through liquidations. A zero-fee model with no funding or spread also removes the usual cost signals that temper leverage, so risk is expressed through liquidation mechanics rather than pricing. The question worth watching is whether HyperEVM's infrastructure can absorb that kind of reflexive pressure without transmitting stress beyond the platform.