Market Overview
GMX suffered a $42 million security breach on July 9, 2025, targeting its GLP liquidity pool on Arbitrum. After initially plunging 28%, GMX now trades at $12.48 USDT (down 11.49% in 24 hours). This attack joins several major DeFi exploits in 2025, raising concerns about layer-2 security protocols.
Key Factors
• Technical Vulnerability: Attackers exploited GMX V1's global short average price calculation, minting and redeeming GLP tokens for undervalued assets via Tornado Cash-funded contracts. Vulnerability Analysis
• Response: GMX paused V1 trading, froze GLP operations, and offered a 10% bounty (~$4.2M) for fund return within 48 hours. Bounty Details
Trading Implications
• Expect high volatility with recovery dependent on fund return
• Monitor GLP pool status updates closely
• Reassess exposure to Arbitrum-based DeFi protocols
• Consider volatility trading strategies while watching the attacker's address
Community Sentiment
Reactions range from panic selling to cautious optimism about GMX's recovery potential. The bounty strategy has divided opinion, with debate about whether it incentivizes future attacks. Arbitrum Breach Report
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