$GMX Suffers $42M Exploit — Token Plunges Over 20%
Summary of Events
On July 9, 2025, decentralized trading platform GMX experienced a major security breach that resulted in $42 million in losses. The platform’s native token dropped sharply from $14.42 to $10.30 before showing a slight recovery. The exploit targeted GLP liquidity pools on Arbitrum, sending shockwaves through the DeFi space.
How the Exploit Worked
The attacker exploited a flaw in the price calculation mechanism of GMX’s GLP pools. This allowed them to manipulate values and extract large amounts of funds. In response, GMX halted trading and paused GLP activity on Version 1 of the platform.
The team has already traced the attacker’s wallet and is offering a 10% bounty ($4.2 million) for the return of the remaining funds, promising no legal action if the offer is accepted.
It’s important to note that GMX Version 2 was not impacted by the hack.
What Traders Should Know
The token remains highly volatile, with rapid price movements.
Short-term traders might find opportunities in price rebounds or gaps.
If the funds are recovered, a faster recovery in token price is possible.
Long-term users may still support GMX due to the unaffected V2 platform.
Community Reaction
The incident has raised concerns about DeFi security, especially on the Arbitrum network.
Some applaud GMX’s quick response, while others criticize the lack of proper security measures beforehand.
This breach is intensifying calls for stricter smart contract audits, and regulators are likely to increase scrutiny of DeFi platforms.
Final Takeaway
The GMX hack is a reminder that even top-tier DeFi platforms are not immune to vulnerabilities. Traders should stay informed, follow project updates closely, and avoid jumping into unstable assets.
GMX’s future now depends on how they handle the situation, restore trust, and prevent future breaches.