Massive Bunni DEX Hack: $2.4M Vanishes in a Flash-What Happened?

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Ah, the sweet symphony of decentralized exchanges-where fortunes bloom like wildflowers… and get trampled by exploiters. Enter Bunni, the latest victim in the volatile crypto world. A mere $2.4 million in stablecoins down the drain, thanks to a hacker’s finely-tuned, malicious waltz with Bunni’s liquidity calculations. Ah, how they danced! 💃🕺

The Bunni team-those valiant heroes of code-announced, with no small measure of dismay, on X (formerly Twitter, for the nostalgic) that their beloved app was compromised. The platform, it seems, had been caught in an unfortunate tango with an attacker. As a “precaution,” they halted all smart contract functions. How thoughtful! 😏

“The Bunni app has been affected by a security exploit,” the team mused. “All functions paused on all networks. Updates to follow. Stay tuned!” So, no more liquidity fun for the time being.

Meanwhile, funds worth a rather tidy $1.33 million in USDC (USD) and $1.04 million in USDt (USDT) found themselves ensnared in a hacker’s wallet, presumably to be washed in some ill-gotten waters.

Bunni’s very own @Psaul26ix, in an act of rare urgency, pleaded with users to withdraw their funds. “If you have money on Bunni, remove it ASAP,” they cried. Alas, who knew a few well-timed tweets could hold so much gravity in the midst of chaos?

CryptoMoon, never one to miss a scoop, reached out to Bunni and Euler for comment but-shockingly-had yet to receive a reply by publication. How enigmatic! 💀

How Bunni Fell Victim to the Hack

The post-mortem is still in the works, but the early analysis? Oh, the intrigue. It seems that the crux of the matter lies in Bunni’s liquidity rebalancing mechanism. A beautiful concoction built upon Uniswap v4, with a custom Liquidity Distribution Function (LDF) designed to “optimize” liquidity across price ranges. And, like all the best-laid plans, this one had a fatal flaw. 💔

The attacker, a figure of insidious genius, apparently exploited the LDF by executing trades of very specific sizes, triggering Bunni’s faulty rebalancing logic. The result? A catastrophic miscalculation of how much each liquidity provider should own. So much for optimization, eh?

Victor Tran, co-founder of KyberNetwork, revealed the dark art: “The exploiter figured out they could manipulate this LDF by making trades of very specific sizes.” Yes, it was the size of the trade-how predictable! 🙄

Through these targeted trades, the attacker drained the funds slowly and methodically, without triggering alarms. It was as if they had an intimate knowledge of Bunni’s inner workings. Were they once an ally? Or just a clever foe in disguise?

The Larger Crypto Hack Epidemic

But wait, the crypto world is a carnival of chaos, and August didn’t disappoint. Over $163 million was stolen in 16 separate hacks, a grotesque 15% increase from July’s “modest” $142 million. The crypto market’s rise seems to be attracting all manner of digital desperadoes. Go figure. 🤷‍♂️

PeckShield, always the vigilant watchdog, noted a shift in hacker tactics. Now, rather than targeting the small fry (you know, decentralized platforms with the charm of an underdog), they’re going after centralized exchanges and high-value individuals. Ah, the thrill of the chase. 🏃‍♂️💨

The most notable incident? A social engineering attack where a Bitcoiner was tricked into sending 783 BTC (worth a jaw-dropping $91 million) to attackers masquerading as support agents from a crypto exchange. Smooth, isn’t it? Remind me not to trust any support emails from now on… ever.

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2025-09-02 11:26