GMX DEX Hacked for $42M, $40M Returned, Token Drops 17%
Following the GMX hack on the Arbitrum L2 network, attackers exploited structural flaws in the GLP liquidity pool and oracle design. They used flash loans to manipulate prices and siphon $42 million in USDC, DAI, WBTC, ETH, WETH, UNI and LINK.
GMX quickly disabled V1 trading, GLP issuance and redemption on both Arbitrum and Avalanche. The platform reassured that GMX V2 markets, liquidity pools and the native GMX token remained secure.
The GMX hack drove the GMX token down 17% from $15 to $11.40. After the breach, the attacker returned $40 million and entered compensation talks. This incident highlights persistent cross-chain DeFi risks and the need for robust oracles, multi-sig controls and on-chain risk management.
Bearish
GMX token fell 17% after the hack, reflecting disrupted liquidity and trader uncertainty. Although $40 million was returned, the breach exposed core flaws in the GLP pool and oracle system. This undermines confidence and likely suppresses demand in the near term. In the long term, strengthened oracles and risk controls may stabilize TVL and rebuild trust, but until proven, GMX price pressure remains bearish.