Lending protocol Hyperdrive, built on the Hyperliquid network, was the target of a smart contract attack on Saturday worth approximately $782,000.
The attacker drained two of the protocol's funds, taking 673,000 USDT0 and 110,244 thBILL.
According to blockchain security firm CertiK, the breach was caused by the exploitation of an "arbitrary call in the router," a smart contract vulnerability. The Hyperdrive team responded by pausing the entire protocol to prevent further losses.
In a statement released on Sunday, the team confirmed that it has identified the root cause, fixed the issue, and is preparing a compensation plan for affected users.
A full post-mortem report is expected to be released soon.