GMX Contract Vulnerability: $42.00M Reported Loss
On July 9, according to monitoring by MistTrack’s MistEye security system, the well-known decentralized trading platform GMX (@GMX_IO) suffered an attack, resulting in asset losses exceeding $42 million.
- Reported loss
- $ 42,000,000
- Attack category
- Contract Vulnerability
Incident Overview
Analysis indicates that the core of this attack lies in the exploitation of two features: the use of leverage when the Keeper system executes orders, and the update mechanism where the global average price adjusts during shorting operations but does not update when closing short positions. Leveraging these mechanics, the attacker conducted a reentrancy attack to create large short positions, manipulating the global short average price and the size of the global short position. This, in turn, artificially inflated the price of GLP, which the attacker then redeemed for profit. Following negotiation, the attacker returned all stolen funds and received a $5 million bounty.
Sources & References
This record presents information attributed to the linked sources. Incident dates describe the original event, not a new report. Reported loss figures reflect the source record and are not current market valuations.