That distinction matters during Papertrade’s restricted launch. Its rollout plan required transactions to pass through the website and approved relayers, which submit users’ trading instructions to the blockchain, rather than allowing direct public contract interaction. The plan said transaction ordering was “always indiscriminate of user/account,” while allowing priority weightings to change.
Pseudonymous observer ManaMoon had speculated that a trader accused of price manipulation could not close positions: “think he might be blacklisted at the relayer level.” ManaMoon also claimed a second wallet’s long positions had been liquidated after being profitable. Wallet-specific blocking and that second-wallet outcome remain unconfirmed by The Defiant.
Papertrade attributed the alleged manipulation attempts to unusually permissive launch exposure limits. The team said one user subsequently lost almost all earlier profits through new accounts, and that some users opted to “undo” trades it characterized as manipulated in exchange for their farmed PAPER tokens. The statement did not identify those accounts or explain how the reversals were executed.
Cited Wallet Shows $1.28 Million in Trading Gains
The wallet ending in `840e`, which pseudonymous observer El33 linked to the alleged strategy, showed about $1.28 million in cumulative realized trading profit, no open positions and no queued profits on PaperDash. That compares with approximately $1.73 million in realized gains in The Defiant’s earlier report.
Those account figures do not establish manipulation or reconcile the team’s claim about losses across additional accounts. PaperDash’s downloadable history labels its trade coverage partial and distinguishes reported trading profit from cash received.
Papertrade’s published administrative controls give two-of-three multisigs comprising @izebel_eth, @blurr and @UngusTrade powers to pause new positions, freeze markets, configure relayers and adjust opening headroom. The announced market-freeze mechanism expressly allows existing positions to close against the paused midpoint; it is not described as a wallet-specific ban on closing.
The money available to pay winners is separate from customer collateral. Administrator @izebel_eth has explained that trader losses enter the pool, while unpaid profits can enter a payout queue. PaperDash’s Oct. 11 snapshot showed about $4.30 million in the pool and an empty payout queue, compared with $3.14 million and no queued payout debt in the earlier report.
