GMX Exploited for More Than $500,000

Decentralized exchange GMX was hit in a price manipulation exploit, with the attacker taking off with some $565,000.

GMX is a relatively young crypto exchange, having launched just late last year on Ethereum layer-2 solution Arbitrum. However, that’s more than enough time to become a victim of cybercrime in the crypto industry.

GMX’s AVAX/USD market was the target of the attack. By exploiting “minimal spread” and “zero price impact” features, the attacker opened substantial positions without any slippage, then sold the AVAX/USD at a higher price on centralized exchanges.

While GMX has confirmed its AVAX/USD market will remain available, the DEX did limit long positions to $2 million, and short positions to $1 million. It remains to be seen whether GMX will have to ditch the two of its features that enabled the attacker to pull off the exploit.