cryptonews.net
Decentralized exchange GMX suffered from the actions of one of the traders. An unknown person took advantage of the “minimum spread” and “zero price effect” features of the Avalanche network token (AVAX). The price manipulation affected GLP holders who provided GMX with liquidity in the form of AVAX.
Unknown successfully made a profit by opening large positions with zero slippage. After that, he moved AVAX/USD to centralized exchanges and repeated the steps five times. The profit of a trader is approximately estimated at 500,000-700,000 dollars. Joshua Lim, head of derivatives at Genesis Trading, noted that the user paid the spread to market makers on other sites, so the profit received is less.
In response, the price of GMX fell 10.6%, according to data from CoinGecko. At the time of writing, GMX is trading at $39.9. It also comes amid a broader market pullback, with total capitalization falling 7.3% over the last day to around $940 bln.
Image: Medium