- Recent progress in the understanding of the high density phase of neutron stars advances the view that a substantial fraction of the matter consists of hyperons. The possible impacts of a highly attractive interaction between hyperons on the properties of compact stars is investigated. We find that the equation of state exhibits a second stable minimum at large hyperon contents which is in accord with existing hypernuclear data. This second solution gives rise to new effects for neutron star properties which are similar to the ones proposed for the deconfinement transition to strange quark matter and absolutely stable strange stars. We find that the corresponding hyperstars can have rather small radii of R=6-8 km independent of the mass. PACS: 26.60+c, 21.65+f, 97.60.Gb, 97.60.Jd