$GMX Hit by $42M Hack – Token Drops Over 20% in a Single Day

What Happened?

On July 9, 2025, decentralized trading platform GMX was hacked, leading to a massive $42 million loss. The GMX token crashed from $14.42 to $10.30 in just hours, before bouncing slightly. The attacker targeted GLP liquidity pools on Arbitrum, shaking the entire DeFi community.

How It Happened

The hacker found a weakness in how GMX's GLP pool calculated prices. This bug allowed them to take unfair advantage and drain funds. In response, GMX stopped all trading and paused GLP operations on Version 1 of their platform.

They’ve already identified the attacker's wallet address and are offering a $4.2 million bounty (10% of the stolen funds) if the hacker returns the rest, with no legal consequences.

Important to note: GMX Version 2 was not affected by this attack.

What Traders Should Know

The token is highly volatile right now, with fast price swings.

Some short-term gains may be possible from price gaps or bounces.

If stolen funds are returned, price could recover faster.

Since GMX V2 is secure, long-term users might still stick with the project.

Community Reactions

Many traders are now worried about security on decentralized platforms, especially those running on Arbitrum.

People are split on how GMX handled the situation—some say they moved fast, others believe they should’ve done better checks earlier.

This incident is also pushing for stricter security audits in the DeFi world. Plus, regulators are expected to pay closer attention now.

Final Thoughts

This is a wake-up call for DeFi. Even big platforms like GMX can be vulnerable. Traders should stay alert, double-check project updates, and avoid rushing into unstable assets. Whether GMX can fully recover depends on their actions in the coming days—and whether trust can be rebuilt.