How Market Manipulation Led to a $100M Exploit on Solana DeFi Exchange Mango

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A rogue crypto trader utilized millions of dollars to manipulate the prices of the thinly-traded MNGO tokens on the namesake decentralized exchange (DEX) to eventually drain over $116 million in liquidity from the platform. Reporting by shauryamalwa.

that had $207 million in debt spread across multiple lending platforms – in a move that was supposed to backstop potential losses across the Solana ecosystem if the whale’s position were to be liquidated.Solana-based Mango, like other DEXs, relies on smart contracts to match trades between decentralized finance users.

As spot MNGO prices increased, the trader’s account “B” quickly racked up some $420 million in unrealized profits. The attacker then took out over $116 million in liquidity from all tokens available on Mango, which effectively wiped out the protocol. All in all, the rogue trader used over 10 million USDC to take out over $116 million from Mango, paying minimal fees for conducting the attack and doing everything within the parameters of how the platform was designed. Mango wasn’t hacked, it worked exactly as intended, and a savvy trader, albeit with nefarious intentions, managed to wring token liquidity out.

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shauryamalwa This is outright false Mango did not even use Pyth for MNGO specifically...

shauryamalwa Weirdly bad editorializing in that article. The attacker exploited the protocol and Mango didn’t blame Pyth for it.

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