On June 26, a security breach in the Resupply protocol led to a loss of around $9.5 million due to price manipulation.
Ways Price Manipulation Was Exploited
A PeckShield report highlighted that the attacker inflated the share price of cvcrvUSD through vault donations, skewing the lending operation in their favor.
Impact of the Attack on the Market
Following the hack, the extraction of 10 million reUSD caused temporary disruptions in Resupply’s market stability, with the project team quickly suspending impacted contracts and promising a compensation plan for users.
Need for Enhanced Security
The incident underscores the necessity for robust security measures in cryptocurrency protocols to safeguard against future breaches and foster trust within the digital finance ecosystem.
The breach of Resupply serves as a reminder of the importance of security in the cryptocurrency sector and the need for trustworthy mechanisms for users.
