Hyperdrive: Investigation Underway, thBILL Reportedly Not Vulnerable

In this article, we examine the recent incident in the Hyperliquid ecosystem involving Hyperdrive and the thBILL asset. The claim is that two wallet positions using thBILL as collateral suffered an attack, but the Hyperdrive team insists that thBILL** itself has no inherent vulnerability**. We’ll explore what happened, why it matters, and what to watch as the investigation develops.

What Happened with Hyperdrive and thBILL

On September 27, Hyperdrive issued a statement asserting that the thBILL token is not flawed or exploitable in itself. The controversy arose after two wallet positions, which used thBILL as collateral in Hyperdrive’s on-chain treasury/“national debt” market, appeared to be compromised or attacked. The team is currently investigating what happened. Followin

• thBILL is used as collateral within Hyperdrive’s systems
• Two wallet positions reportedly lost funds or were attacked
• Hyperdrive denies that the root issue is a token vulnerability
• Full investigation is ongoing

Why This Incident Still Raises Concerns

Even though the team claims thBILL is safe, the event draws attention because collateralized assets are foundational in DeFi. If users lose trust in a token’s security, it can cascade into liquidity drains or wider protocol stress.

• Collateral risk is among the highest structural risks in DeFi
• Users may hesitate to use thBILL in other protocols
• Protocols dependent on thBILL liquidity or integrations may feel pressure
• The outcome of the investigation could influence market sentiment

What the Investigation Will Need to Confirm

To restore confidence, several key questions must be answered:

• Was the attack due to a user-level exploit (private key, wallet weakness)?
• Did the Hyperdrive smart contracts or logic enable the exploit?
• Are there systemic vulnerabilities in how thBILL is used as collateral?
• What compensations, protections, or safeguards will Hyperdrive put in place?

What Users and Observers Should Watch

As the investigation unfolds, stakeholders should keep an eye on:

• Official incident reports or security audits published by Hyperdrive
• Any disclosures on transaction addresses or attack vectors
• How thBILL’s on-chain behavior changes (e.g. volume, collateral usage)
• Reactions from counterpart DeFi protocols and integrations