Recently, the Stars Arena Web3 social media application on Avalanche lost some funds due to malicious attacks. Stars Arena user Lilitch.eth discovered the vulnerability on October 5 and announced it on social media, claiming over $1 million in losses. The Stars Arena team confirmed the attack, calling it a "war" against the app. They said the attack only caused about $2,000 in damage and that the vulnerability has been patched.

Stars Arena is similar to Friend.tech in that it allows users to purchase tokenized assets issued by content creators. Avalanche has seen a surge in activity since the launch of Stars Arena, with the network’s daily transaction volume increasing by over 186% from October 3rd to 4th.

However, some users accused Lilitch.eth of spreading fear, while the Stars Arena team posted on social media that "the vulnerability has been fixed." Nonetheless, the incident still caused concern for Stars Arena users, affecting confidence in the entire market.