Another nine-figure exploit has surprised the bitcoin community. This time the hack involves the Solana-based Mango Markets. The hacker drained more than $100M worth of funds. Draining the protocol through price manipulation and high-dollar leverage.
How The Hack Was Done
The blockchain auditing website OtterSec released a statement claiming the hacker was able to manipulate the DeFi protocols. The hacker used the collateral to get a sizable quantity of loans from the Mango Treasury. The Mango Treasury suffered a significant loss of money as a result.
Since the news broke, the Mango token (MNGO) has lost over half its value. At the time of writing, the token’s price was $0.02303. This is a decrease of 42.38% over the previous 24 hours, according to the market monitoring site. Based on its market capitalization, the token is now at position 540.
The Cost, Plus The Pressure
The significant six-figure Binance Bridge hack led to the creation of tokens valued at $500 million.
This hacks in October alone serves as a sharp reminder for this community. It calls for the importance of risk management and intelligent security in this area. According to DefiLlama, the Mango Markets lending protocol was among the leading on the Solana blockchain.
Mango Retorts And Offers A Bounty
Mango Markets has asked the hacker to get in touch regarding a bug bounty. It has also recommended users not deposit into the protocol in the wake of the attack. There are Discord screenshots from earlier this year. They show moderators recognizing worries about what may have contributed to Mango’s hack. Critics use futures bets against themselves and price manipulation to their advantage.
Implications On The Crypto Community
Major crypto hacks occurring back-to-back can be unfavourable. they can lead to even more negative market sentiment soon.
The Binance Smart Chain network experienced an exploit last week on the Token Hub across-chain bridge. OtterSec believed that hacks frequently had severe repercussions for the community. Over 4000 short liquidations occurred due to the price increase across Mango Markets.
The SOL price decreased after the exploit by 2.30% before making a minor comeback. Due to the price decline, SOL was on the verge of hitting its monthly low. According to CoinMarketCap, the price of SOL is $30.97 as of this writing, a 1.55% drop during the previous 24 hours.