Hypervault Disappears with $3.6M in Suspected DeFi Rug Pull
DeFi platform Hypervault suffered a suspected rug pull when hackers withdrew $3.6 million from its vault and routed 752 ETH through Tornado Cash. The project’s website and social channels vanished abruptly, leaving over 1,100 depositors locked out. This Hypervault rug pull exposes the risks of unaudited liquidity pools after developers falsely claimed audits by Spearbit, Pashov and Code4rena. Prior to the exit scam, Hypervault marketed itself as an unmanaged auto-compounding vault with yields up to 95%, managing $5.9 million in TVL. The incident mirrors other high-profile DeFi rug pulls in 2025, underscoring caution for traders in yield-farming protocols.
Bearish
The suspected Hypervault rug pull is bearish for the DeFi sector, eroding trader confidence in auto-compounding vaults and unaudited protocols. Similar exit scams in 2025, such as Test Token and Official Melania Meme, triggered sharp withdrawals and price declines, driving investors to safer assets. In the short term, market volatility may spike as users divest from high-yield projects, and ETH could see downward pressure from increased Tornado Cash outflows. Long-term, this event may lead to stricter due diligence, greater demand for audited protocols, and a preference shift towards established DeFi platforms with transparent security practices.