Hyperithm is allocating 35% ($70M) of its Morpho vault liquidity to lending markets for its own stablecoin, mHYPER, while also providing $35M USDC from mHYPER to the same vault. This circular strategy, with 25.17% of the vault allocated to mHYPER/USDC and 10.06% to PT-mHYPER-20NOV2025/USDC, raises concerns about potential risks due to concentrated exposure to their proprietary stablecoin. Investors should be aware of the inherent risks in such a self-referential liquidity structure.