Today (July 9, 2025), the decentralized trading protocol GMX (especially V1 on Arbitrum) was subjected to a security breach exploited through a 're-entrancy' vulnerability, allowing the attacker to mint and inject the equivalent of $42 million in GLP tokens quickly and withdraw them through the Arbitrum network to Ethereum to avoid tracking.
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🎯 Impact on price
The price of GMX dropped from around $14 to $12 immediately after the breach.
According to CoinMarketCap/CMC, the price fluctuated around $10.80 after the drop, according to current reports.
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🛡 How did the GMX team react?
Minting/redemption operations in V1 protocol on Arbitrum and Avalanche have been disabled as a precautionary measure.
The team sent a message to the attacker offering a 'white-hat' reward of 10% for the return of the funds.
So far, there is no detailed official report, but an investigation is underway, and an official news and compensation plan for the affected is expected to be announced soon.
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🧭 What does this mean for investors?
The rapid price loss reflects a loss of confidence, but disabling the system limits further potential losses.
Successfully recovering part of the funds through the white-hat reward can gradually restore trust, but anticipation remains high.
The situation is still evolving; checking wallet addresses tracking the flow of funds may seize some of them.
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✅ Summary
GMX V1 was targeted through Arbitrum/Avalanche only; V2 and the GMX token itself are almost unaffected.
The rapid price drop is normal after the leak of $40 million.
The team is taking precautionary and serious steps to contain the crisis and activate the 'white-hat' plan.
If you are a token holder, it is wise to:
Follow official announcements from GMX.
Follow the wallet movements used in the breach.
Consider partial selling to reduce risks, then reassess after the compensation plan is released.