Mango Markets, a Solana blockchain-based decentralized trading platform, appears to be the most recent target of a crypto hack. Just days after the Binance bridge hack, another incident in the crypto DeFi sector arose on October 12.

Mango Markets Hack

MM is a Solana-based platform for trading digital assets on the Solana blockchain on spot margin and perpetual futures. Mango DAO manages Mango Markets. Hackers struck once more, stealing approximately $117 million from Mango Markets, decentralized finance (DeFi) trading platform on the Solana blockchain.

Mango announced on Twitter on the evening of October 11 that there had been “an incident” involving a hacker draining funds. Mango Market tweeted on October 12 that the hack was caused by price manipulation on the native MNGO token. The platform’s management stated they were investigating the source of the exploit.

In a tweet, Mango Markets stated that it was blocking front-end deposits. Furthermore, the team has asked that users refrain from making deposits until the situation is resolved. Moreover, Mango Markets offered the attacker the opportunity to receive a bug bounty in exchange for reclaiming the stolen funds.

How Did the Hack Occur?

According to OtterSec, a blockchain security audit, the hacker allegedly manipulated the price of the native token Mango (MNGO) collateral, depleting the platform of significant loans. Following that, the hacker borrowed $116 million, resulting in a net loss of 116.7 million for Mango’s treasury.

According to Joshua Lim, Genesis’ head of derivatives, the hacker carried out the hack using two accounts, going short on one and hedging his position on the other.

The hacker placed a 5 million USD Coin (USDC) into the network before initiating an unusually long position. He bought 438 million Mango tokens, making an unrealized profit of $420 million.

The collateral value of the hacker’s account increased by nearly 1,000% as the price of MNGO increased. He eventually destroyed the protocol by stealing $116 million in liquidity from all available tokens.

DeFi Hacks Hurt Market Sentiment

Smart Contracts are used to carry out transactions in DeFi trading systems. Because there is no involvement from a third party, hackers exploit the vulnerability to exploit the network and steal money from it.

Moreover, It would be impossible to manipulate cryptocurrency prices on a centralized market, as hackers did with the Mango token. This is because whenever a trader makes a large offer on one item, its price rises across the market.

As a result, making a significant profit right away is impossible. Thus, It has raised numerous concerns about the crypto markets and decentralized finance.

Negative market sentiment could be triggered by major crypto attacks that occurred back-to-back. Last week, the Binance Smart Chain (BSC) network was subjected to an exploit on the BSC Token Hub, a cross-chain bridge. OtterSec believed that hacks had a significant impact on the community.

Mango markets experienced approximately 4,000 short liquidations due to the price increase. Furthermore, the price of SOL fell by 2.30% following the exploit before making a minor comeback. Due to the price decline, SOL nearly reached a low level.

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