Former Mt.Gox CEO questions insufficient communication over the Ledger hardware implant incident; Pascal Gauthier hits back: "You are no white knight"

HIP-3 market deployer Paragon spent 570.98 HYPE (approximately $45,000) to acquire the PAPER code, and is reportedly set to launch Papertrade (PAPER) perpetual contracts. Papertrade is an on-chain synthetic perpetual contract trading platform built on HyperEVM, offering up to 1000x leverage. Its PAPER token is minted from users' realized trading losses, with no pre-mining, team, or venture capital allocations.

According to CNBC, U.S. stocks closed lower on Friday, with the Nasdaq down 2.14%, S&P 500 down 1.09%, and Dow Jones down 0.34%. Both the Nasdaq and S&P 500 closed below their 50-day moving averages, and the VIX index rose above 22 for the first time in four months. For the full week, the Nasdaq fell more than 4%, marking its worst weekly performance since June; the S&P 500 dropped around 2%, while the Dow Jones gained 0.7%. Tech and AI-related stocks continued to face sell-offs. The semiconductor ETF (SMH) fell 3% on the day and 10% for the week, posting its largest weekly decline since April 2025, led by Micron, AMD, and SanDisk. Markets are concerned about competition from Chinese manufacturers and tech companies taking on excessive debt for AI infrastructure. AI cloud service provider CoreWeave fell nearly 12% on the day and 25% for the week, with total debt exceeding $51 billion. Rising tensions between the U.S. and Iran, and between Russia and Ukraine, pushed oil prices higher. WTI crude oil futures rose 3.51% to settle at $101.41 per barrel, while Brent crude futures gained 3.72% to settle at $109.86 per barrel. Energy stocks rose against the trend, with names like Chevron helping to limit the Dow’s losses.

Beating AI News: AI coding tool OpenCode has disclosed a security incident affecting 1.4% of its Console users. All affected users had linked third-party model services via the cloud. Public notifications from users show an old system slated for deactivation was accessed without authorization, potentially exposing OpenAI, Anthropic, and other API keys stored in workspaces. The OpenCode team has sent emails to affected users. OpenCode offers both local coding tools and an optional cloud-based Console service. Users can entrust their API keys to the Console for it to call models on their behalf, allowing team members to share these models without accessing the original keys directly. Once attackers obtain these keys, they can bypass user login to directly call paid models, with charges billed to the original account holders. A Reddit user reported $400 in unauthorized calls to their Anthropic account. OpenCode linked the incident to "large-scale model distillation attacks" — a practice of collecting responses from one model in batches to train another model with that data. If attackers steal a large number of API keys, they may use others' accounts to collect training data, shifting high model call costs onto the original users. OpenCode is collaborating with Anthropic, OpenAI, and Google to resolve the incident. Anthropic's Lydia Hallie stated the company has revoked potentially affected Claude API keys. OpenCode is urging affected users to visit the respective model service providers' backends to revoke and replace their keys, and check for recent abnormal calls.

This gambler's $ETH long was also fully liquidated 5 hours ago, resulting in a $1.08M loss. He still holds a long position on 1,355.6 $BTC ($110.85M), with a liquidation price of $80,035.7. But he has set a stop-loss at $80,500.

On-chain analyst Ai Yi (Twitter handle @ai_9684xtpa) has monitored that the whale address 0x77d…ae0e9, which ranks among the top three in ETH holdings on Hyperliquid, has an unrealized loss of $9.493 million on its ETH long positions, making it the address with the largest unrealized loss on ETH on the platform. This address opened 13x leveraged ETH long positions starting September 21, and has since reduced its position by 8,250 ETH, booking a realized loss of $2.277 million. It currently holds 40,268.75 ETH in long positions, with a position value of approximately $97 million, an average entry price of $2,646.05, a liquidation price of $2,290.99, and the current ETH price is about $116.51 above its liquidation price.

Beating AI Express (Insight) – Perplexity has announced the open-source integration of its reverse engineering tool REA (Reverse Engineer Anything) into its Computer feature. Users only need to tell the AI which software they want to replicate; without access to the original source code, it analyzes the software’s operation and attempts to build a functionally similar version. Perplexity showcased five replicated works, all available as web versions for online testing: 1. Figma: Supports layers, auto-layout, real-time multi-user collaboration, account login, and cross-device synchronization. 2. LibreOffice Calc: Supports cell editing, formula writing, and automatic chart updates when data is modified. 3. Photopea: A web-based alternative to Photoshop, supporting layers, masks, color grading, and text editing. 4. Harvey: An AI tool for legal professionals, capable of searching contracts, comparing versions, marking clauses per specified rules, and attaching original text references. 5. Audacity: Supports audio editing, mixing, volume adjustment, fade-in/fade-out, and WAV file export. REA is open-sourced by developer morluto, and works with tools like Ghidra and Hopper to analyze internal functions, call relationships, and operational behavior of programs. It can also inspect web pages, JavaScript, and Electron applications. However, this does not mean the AI can fully replicate commercial software; the REA creator explicitly states the tool cannot guarantee full recovery of the original source code. Perplexity is offering limited-time free credits for this feature: until October 31, users can access up to 10,000 free credits per person for `/reverse-engineer` tasks.