- Buy Crypto
- Markets
Futures- Spot
- Copy Trade
- Earn
- More
GMX Releases $40 Million Vulnerability Exploitation Event Recap: Further Discussion on Compensation Measures
BlockBeats News, July 11, GMX officially released a summary report on the GMX V1 approximately $40 million exploit on Arbitrum.
Event Summary:
The attacker bypassed the PositionRouter and PositionManager contracts (usually responsible for calculating the average short price) by directly calling the Vault contract's increasePosition function through reentrancy;
Through manipulation, the attacker pushed the BTC average short price down from $109,505.77 to $1,913.70;
Using a flash loan, the attacker purchased GLP at a normal price of $1.45, opening a $15 million position;
Due to the manipulated price, the GLP price was pushed above $27, allowing the attacker to redeem GLP at a high price for profit;
GMX has confirmed that V2 does not have a similar vulnerability.
Next Step Funding Situation:
Approximately $3.6 million remains in the GLP pool, reserved for unclosed positions;
The cost of V1's GLP on Arbitrum this week is around $500,000 (excluding the 30% portion allocated to GMX stakers) and will be transferred to the DAO Treasury for compensation;
Will disable GLP minting and redemption on Arbitrum (redemption disablement requires a 24-hour Timelock);
Disable GLP minting on Avalanche but retain the redemption function;
Enable the closure of V1 positions on Arbitrum and Avalanche, disable opening positions to prevent a recurrence of the vulnerability;
Cancel V1 orders on Arbitrum and Avalanche. Remaining funds in the GLP pool on Arbitrum will be allocated to the compensation pool for use by affected GLP holders.
After the above steps are completed, the GMX DAO will discuss further compensation measures. It is recommended that all GMX V1 forks take immediate action, await fixes and audits before re-enabling trading and minting of GLP-like tokens.
You may also like
Guarding billions in assets, yet unable to sustain itself: Tally bids a dignified farewell after five years
SEC’s Stance on Crypto Assets: Most Not Considered Securities
Key Takeaways: The SEC’s new interpretation categorizes most crypto assets as non-securities under federal law. This move aims…
South Korea’s New Crypto Seizure Guidelines After Asset Mismanagement Incidents
Key Takeaways: South Korea’s National Police Agency (KNPA) has drafted guidelines for crypto seizure, with a focus on…
Institutional Confidence in Crypto’s 2026 Growth Trajectory
Key Takeaways: A significant 73% of institutional investors plan to increase their crypto holdings by 2026. Exchange-traded products…
Ethereum Reduces Bridge Times by 98% with Fast Confirmation Rule
Key Takeaways: Ethereum introduces the Fast Confirmation Rule (FCR) aiming to cut bridge times from L1 to L2…
Crypto Firms Advocate DeFi Education in US Colleges
Key Takeaways: Twenty-one crypto organizations have called on US colleges to integrate decentralized finance (DeFi) into their curricula…
RedotPay Reorganizes Amidst Funding Tries and IPO Goals
Key Takeaways: RedotPay is facing leadership changes and concerns over its connections with mainland China while eyeing a…
Bitcoin ETF Streak Nears October Highs While Inflows Lag Behind
Key Takeaways: US spot Bitcoin ETFs have continued their inflow streak for seven straight days, accumulating $1.2 billion…
Connecticut Suspends Bitcoin Depot as Revenue Prospects for 2026 Worsen
Key Takeaways: Connecticut halts Bitcoin Depot’s operations, citing regulatory breaches related to the Money Transmission Act. Bitcoin Depot…
DAO Governance Platform Tally Shuts Down Due to Market Challenges
Key Takeaways: Tally, after operating for five years, is shutting down due to a lack of viable business…
Trump Memecoin Shows Volatility Amid Mar-a-Lago Event
Key Takeaways: TRUMP memecoin holders surpassed 83 wallets with over one million tokens after a luncheon announcement with…
Bitcoin Surge in Australian E-commerce Faces Banking Hurdles: In-depth Analysis
Key Takeaways: Cryptocurrency usage in Australia for purchasing goods and services doubled from 6% to 12% in 2026.…
Meta Shuts Down Horizon Worlds VR for Mobile-Centric Strategy
Key Takeaways: Meta is transitioning Horizon Worlds from a VR to a mobile-centric platform starting June 2026. The…
Bitcoin Exchange Inflows Surge Amidst $75,000 Resistance
Key Takeaways: Bitcoin inflows to exchanges have spiked to 6,100 BTC, hinting at potential selling pressure. The large…
Bitrefill Identifies Lazarus Group Behind Cyberattack and Stolen Funds
Key Takeaways: Bitrefill suffered a cyberattack on March 1, likely orchestrated by the infamous Lazarus Group using sophisticated…
Coin Center Advocates for Rulemaking Over No-Action Letters in Crypto Regulation
Key Takeaways: Coin Center challenges the SEC’s reliance on no-action letters, promoting a shift toward comprehensive rulemaking in…
On the eve of the Fed meeting, are traders starting to bet on a rate hike?
Can AI Make $200 a Day with Weather Forecasting?
Guarding billions in assets, yet unable to sustain itself: Tally bids a dignified farewell after five years
SEC’s Stance on Crypto Assets: Most Not Considered Securities
Key Takeaways: The SEC’s new interpretation categorizes most crypto assets as non-securities under federal law. This move aims…
South Korea’s New Crypto Seizure Guidelines After Asset Mismanagement Incidents
Key Takeaways: South Korea’s National Police Agency (KNPA) has drafted guidelines for crypto seizure, with a focus on…
Institutional Confidence in Crypto’s 2026 Growth Trajectory
Key Takeaways: A significant 73% of institutional investors plan to increase their crypto holdings by 2026. Exchange-traded products…
Ethereum Reduces Bridge Times by 98% with Fast Confirmation Rule
Key Takeaways: Ethereum introduces the Fast Confirmation Rule (FCR) aiming to cut bridge times from L1 to L2…
Crypto Firms Advocate DeFi Education in US Colleges
Key Takeaways: Twenty-one crypto organizations have called on US colleges to integrate decentralized finance (DeFi) into their curricula…
App