Allbridge flash-loan exploit drains $1.65M via Solana stable-pool

| cryptodaily.co.uk
Allbridge flash-loan exploit hit Solana, draining about $1.65M from USDC/USDT stable liquidity pools through fast stable-pool manipulation. The attacker reportedly borrowed around $1.12M via Kamino, then used rapid USDC↔USDT swaps to temporarily skew the pool’s near-1:1 pricing, gaining an advantage for withdrawals before protections triggered. Timeline and traces: On July 19, 2026, Allbridge Core paused its cross-chain protocol “as a precaution” after security reports. July 19–20 analysis linked the flash-loan exploit to a swap spiral that distorted pool ratios, followed by funds moving off Solana to an Ethereum address—confirmed by PeckShield and CertiK alerts. Traces cited a recorded 948,927.53 USDT withdrawal and roughly $2.24M USDC flowing within Allbridge. What this means for traders: Expect heightened risk scrutiny around stable pools and bridge-related liquidity. Watch for abrupt slippage and pool-ratio changes, plus alternating-direction stablecoin swap patterns consistent with a flash-loan exploit. While the report says there is no immediate threat to user liquidity, TVL and depth can drop quickly as LPs withdraw and the protocol prepares adjustments (including a relaunch without affected pools).
Neutral
This is a DeFi security incident focused on stablecoin liquidity pools and Allbridge’s cross-chain setup, not a direct attack on SOL/ETH price formation. However, the protocol pause and LP withdrawals can quickly reduce TVL and depth on Solana-related stable pools, potentially increasing short-term volatility and liquidity risk around those venues. If funds remain untraceable or are not returned, sentiment could worsen, but the summaries indicate no immediate threat to user liquidity right now, keeping broad market impact on the major coins limited.