GMX price dives 20% after $40 million hack
The post GMX price dives 20% after $40 million hack appeared on BitcoinEthereumNews.com.
GMX price fell 20% after the decentralised perpetuals exchange suffered a $40 million exploit on its V1 platform. Investor panic and concerns over repeated security incidents put bulls under pressure near $11.45. GMX’s response to stabilise confidence and mitigate further losses will be key. GMX, an on-chain perpetual and spot exchange, experienced a substantial security breach. The exploit, which resulted in the loss of approximately $40 million, has triggered a sharp decline in the value of the GMX token. As far as hacks go, this incident further underscores the dangers and impact of persistent vulnerabilities within the decentralised finance space. Prices have often dipped sharply amid such news. GMX hacked for $40 million On July 9, 2025, GMX announced that its V1 platform and GLP liquidity pool on the Arbitrum network were compromised, leading to the unauthorised transfer of around $40 million in tokens to an unknown wallet. The GLP pool of GMX V1 on Arbitrum has experienced an exploit. Approximately $40M in tokens has been transferred from the GLP pool to an unknown wallet. Security has always been a core priority for GMX, with the GMX smart contracts undergoing numerous audits from top security… — GMX 🫐 (@GMX_IO) July 9, 2025 The GMX team detailed in a post by X that, following the incident, trading, minting, and redeeming of GLP on both Arbitrum and Avalanche were disabled to mitigate further risks. SlowMist also highlighted the exploit, noting on X: “The root cause of this attack stems from GMX v1’s design flaw where short position operations immediately update the global short average prices (globalShortAveragePrices), which directly impacts the calculation of Assets Under Management (AUM), thereby allowing manipulation of GLP token pricing.” By leveraging the Keeper’s ability to enable timelock.enableLeverage, the attacker created massive short positions, artificially inflating GLP prices, and…
Filed under: News - @ July 10, 2025 11:23 am