How Crypto Responded To DeFi Platform Mango Markets Hack

Within days from the Binance bridge exploit, the crypto community saw another incident with the Mango Markets hack on Wednesday. Blockchain security company OtterSec claimed earlier today that the DeFi hack led to a loss of over $100 million. Mango Markets said the hack to draining of funds from its platform via an oracle price manipulation. Also, the platform disabled deposits as a protective measure.

Mango Markets Exploit: What Went Wrong

Alerting the community of the hack, OtterSec said the attacker managed to manipulate the Mango collateral. “They temporarily spiked up their collateral value, and then took out massive loans from the Mango treasury.” The platform’s team said it was probing the whereabouts of the exploit. Mango Markets said in a tweet that it was disabling deposits on the front end. Initially, the team asked users not to deposit funds until the situation becomes clear.

“We are currently investigating an incident where a hacker was able to drain funds from Mango via an oracle price manipulation. We are taking steps to have third parties freeze funds in flight.”

Meanwhile, the platform’s governance token took a massive hit due to the DeFi hack today. The Mango token (MNGO) lost nearly half of its value since the news broke. As of writing, the token price stands at $0.02303, down 42.38% in the last 24 hours, according to price tracking platform CoinMarketCap. The token is currently ranked 540 based on its market capitalization.

Impact On Crypto Community

Back to back major crypto hacks could mean further negative sentiment among investors in near future. Last week, the Binance smart chain (BSC) network suffered an exploit on a cross-chain bridge, the BSC Token Hub. OtterSec felt the hacks often have large consequences for the community. “The surge in price caused over 4000 short liquidations across Mango Markets.”

Following the exploit, SOL price immediately dropped 2.30% before making a partial recovery thereafter. The price drop meant that SOL almost reached the monthly low level. As of writing, SOL price stands at $30.97, down 1.55% in the last 24 hours, according to CoinMarketCap.

Anvesh reports major developments around crypto adoption and trading opportunities. Having been associated with the industry since 2016, he is now a strong advocate of decentralized technologies. Anvesh is currently based in India. Follow Anvesh on Twitter at @AnveshReddyBTC and reach him out at [email protected]

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