On June 8, Osmosis (OSMO) chain was halted because a “major issue” may have resulted in the loss of $5 million from the liquidity pools of the decentralised finance (DeFi) protocol.
The bug was spotted by a Reddit user who warned that when money was entered into a liquidity pool and then immediately withdrawn, the withdrawal was boosted by 50%.
The moderator of the forum has now removed the post. But not before individuals exploited the glitch and stole millions of dollars in cryptocurrencies.
According to Osmosis, “The liquid pools were NOT ‘totally drained.’ Devs are resolving the problem, estimating the extent of the losses (likely in the $5 million area), and working on recovery.”
According to previous reports, the problem might have drained all liquidity pools.
The team later reported in an update that “The problem has been detected, and a fix has been created. More testing is being conducted before validators are advised to coordinate a restart.” The Osmosis DEX and its native wallet remained inoperable when the chain was halted.
The exploit follows a recent software update to the Osmosis network designed to increase efficiency and user experience. Following the update, several validators apparently began to notice concerns, such as “always missing certain blocks” on Discord.
OSMO’s price was down 4.3% in 24 hours as of press time, at $1.08. According to CoinGecko statistics, the coin has dropped 90 percent from its all-time high of $11.25 on March 4.
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