Hyperliquid Vault Manager Under Fire for Moving $29 Million of User Funds to Other Blockchains

HLP0, which offers depositors a tokenized representation of Hyperliquid’s HLP vault, is facing backlash for withdrawing user funds from the multi-sig and bridging them to Avalanche and Arbitrum DeFi protocols instead of contributing them to the HLP vault.

HLP0 boasts a total-value locked (TVL) of $40 million, but $29 million of that capital has been bridged to Avalanche, and $11 million remains on Arbitrum. The funds are being used on two DeFi protocols, Aave, and Avalanche-based decentralized exchange (DEX), Blackhole, according to the multi-sig’s DeBank profile.

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