On March 25, 2025, two well-known DeFi protocols GMX and Abracadabra (SPELL) became victims of a serious hack, losing 6,260 ETH (~13 million USD), causing the prices of GMX and SPELL tokens to plummet nearly 10%. The hacker exploited a vulnerability in the smart contract, but details remain unclear. Is this a 'wake-up call' for DeFi, or just a temporary stumble for these two major projects?


The 13 Million USD Hack: Developments and Damages

According to PeckShield, the hacker targeted contracts related to #GMX and Abracadabra, stealing 6,260 ETH – equivalent to 13 million USD at the current ETH price (~2,077 USD, 26/03). The stolen ETH has been transferred from Arbitrum to Ethereum, split into 3 separate wallets, indicating thorough preparation. The attack not only caused financial damage but also shook trust in both protocols.


Token prices reacted immediately:



  • $GMX : Down nearly 10%, from ~25 USD to ~22.5 USD (CoinGecko).

  • $SPELL : Also lost nearly 10%, trading around ~0.0005 USD, market cap falling below 100 million USD.



GMX Statement: 'Core Contract is Safe'

Jonas_ALA, a representative of GMX, quickly reassured on X: 'GMX's core contracts are unaffected. The hack mainly impacted the cauldron of #Abracadabra , built on GMX V2 GM pools.' He apologized to users and committed to investigating the cause. However, the details of how the hacker exploited it remain unclear – a big question mark regarding security.


GMX is the leading DEX on Arbitrum and Avalanche, notable for its spot and perpetual trading without funding rates, reducing liquidation risk. Meanwhile, Abracadabra (SPELL) is a lending protocol, lending stablecoin MIM by collateralizing assets like ibTKN. The connection through GM pools causes both to suffer losses.


Abracadabra: 'Reconnecting' with the Hacker

This is not the first time Abracadabra has faced hackers. In early 2024, the project lost 7 million USD, causing MIM to depeg to 0.83 USD. In 2022, MIM also lost its peg twice due to bad debt and the FTT crisis (FTX bankruptcy). This 13 million USD hack further exposes the weaknesses of MIM and Abracadabra – a protocol dependent on the security of complex contracts.


Impact on the DeFi Market

  • GMX & SPELL: Prices dropped nearly 10% reflecting short-term loss of confidence. GMX (TVL ~500 million USD) and SPELL (TVL ~200 million USD) may face capital outflows if not handled properly.


  • DeFi: The hack raises questions about the safety of lending and decentralized DEX, especially when Arbitrum (TVL ~3 billion USD) is the main platform.


  • Overall market: Bitcoin (~88,000 USD) stabilizes, but small altcoins like SPELL are easily 'blown away' by bad news.



Security Vulnerability: What Happened?

Although Jonas asserts GMX is 'safe,' the hack targeted the cauldron – the contract Abracadabra uses GM pools to manage collateral. The hacker may have:



  • Exploitation of contract logic: Taking advantage of a flaw in the borrowing/liquidation mechanism.


  • Cross-chain attack: Transferring $ETH from Arbitrum to Ethereum to 'launder money.'



PeckShield has not released details, but this is a warning for interrelated DeFi protocols.


Why Did the Price 'Fly Off'?


  • Panic: The hacking news triggered a sell-off, even though GMX emphasized that the core was unaffected.


  • History of Abracadabra: Previous MIM depegs have made investors sensitive to bad news from SPELL.


  • Weak market: Altcoins are generally declining (XRP ~0.6 USD, SOL ~147 USD), amplifying the impact.



Conclusion: GMX And SPELL – Recovery or Death Knell?

The 13 million USD hack on GMX and Abracadabra was a heavy blow, pushing the prices of GMX and SPELL down nearly 10%. While GMX asserts core safety and is investigating, Abracadabra reveals old wounds from previous attacks. In the rapidly evolving DeFi landscape (total industry TVL ~100 billion USD), the big question is: Will these two protocols restore trust, or is this the end of their ambitions? With 6,260 ETH in the hands of hackers, the DeFi community is holding its breath – and the answer remains in the dark!


Risk warning: Crypto investment carries high risk due to price volatility. Please consider carefully before participating. #anhbacong