Balancer Hack Drains $116.6M in Latest Exploit Amid Six Incidents
DeFi protocol Balancer faced its sixth major security incident since 2020 after a coordinated hack on November 3, 2025. The latest Balancer hack exploited a manageUserBalance access control flaw in Balancer V2, draining $116.6 million from multi-chain liquidity pools. Attackers transferred 6,587 WETH, 6,851 osETH and 4,260 wstETH before Balancer’s team flagged the breach.
This incident follows five prior exploits—including a 2023 Euler flash-loan spillover and a 2024 Velocore fork bug—with cumulative losses now topping $128 million. Balancer has launched an investigation and is offering a 20% white-hat bounty to recover stolen funds. Traders should brace for continued volatility, monitor Balancer’s security updates, and reassess risk in complex AMM designs. This Balancer hack underlines persistent DeFi security risks and may keep BAL volatile.
Bearish
The latest Balancer hack represents the most significant exploit since 2020, triggering a 4% plunge in BAL token price. In the short term, traders will likely sell off BAL amid uncertainty over fund recovery and further vulnerabilities, deepening bearish sentiment. Continued security concerns may weigh on BAL’s trading volume and market cap until Balancer proves robust fixes. In the long run, the offering of a white-hat bounty and ongoing investigations could restore confidence, potentially stabilizing BAL if vulnerabilities are addressed. However, persistent risks in complex AMM designs will maintain cautious market positioning, limiting bullish momentum.