Gamma Strategies, a decentralized finance platform, got hit by an attack that resulted in a loss of around $3.4 million, as per security experts. The problem stemmed from a big flaw in how they handled accounts, letting the attacker swipe a hefty amount of tokens—over 1500 ETH—due to a critical loophole.
The team found out the glitch: they set the price change threshold too high, opening doors for a massive 50-200% price shift on certain vaults. Gamma Strategies is now trying to contact the person behind the attack.
To stop more losses, they’ve blocked new deposits to public vaults while keeping withdrawals open for users needing their money. Their message on platform X was clear:
‘While our vaults will operate as usual, we’ve stopped taking deposits until we fix this.’
Yajin Zhou from BlockSec clarified that the problem came from a mix-up in how they handle deposits and withdrawals. This mix-up allowed the attacker to game the system and take out way more tokens than they should have.
Gamma Strategies, working on Ethereum and other blockchains, lets people stash funds into ‘hypervisors’ to earn returns through smart money moves in the market.