BSC-based BUNNY Crashes 95.5% Following a Flashloan-based Price Manipulation Attack
Another day, another BSC-based DeFi exploit.
As of writing, the token is trading at $30.06, down 93.5% from the $512.75 ATH hit late last month.
The Pancake Bunny team took to Twitter to clarify that no vaults have been compromised, and the exploit was an economic one that attacked the price of BUNNY using flash loans.
What happened was the hacker used PancakeSwap to borrow a huge amount of BNB, and by manipulating the BUNNY mint price, they ended up getting a huge amount of BUNNY through this flash loan and then dumped them on the market for profit, causing the token’s price to crash.
Blockchain security company PeckShield shared in its incident report that 6.97 million BUNNY were minted by using the bug in the way of measuring the LP price from an AMM-based oracle.
The attack involved 8 flashloans with more than $700 million, it said.
In the light of a series of exploits happening on a BSC-based project, people on Twitter are advising others to be cautious and maybe even move the funds off-chain. One person who claims to be running a BSC node noted,
“The network is constantly forking uncontrollably. For every block that is part of the main chain, there are around 5 uncles (forked blocks). Several validators are running sub-par hardware and cannot keep up with the rest of the network.”