Solana: Mango Markets exploited for $100M after price data manipulation

By: Mark Jessy

Solana: Mango Markets exploited for $100M after price data manipulation

October 12, 2022 4:47 AM

Over the past few months, the Solana [SOL] network has been breached on multiple occasions. There was a Phantom Wallet scam going around yesterday. It was around this time that the SOL community learned about the Phantom Wallet scam that the network's DeFi platform, Mango Markets, was hacked for an estimated $100 million.

 

Mango Markets on the Solana blockchain facilitates spot margin and perpetual futures trading in cryptocurrencies. The Mango Decentralized Autonomous Organization also controls it.

 

The attacker was able to manipulate prices on the DeFi platform and steal the funds.

 

Blockchain auditing website OtterSec found evidence that the hacker artificially increased the collateral's value. The hacker then made a sizable withdrawal from the Mango Markets bank account that followed.

 

At 6:19 PM ET, the hacker allegedly deposited 5 million USDC into account A as collateral. In addition, the attacker offered 483 million units of MNGO perpetual contracts on the Mango Markets order book, as explained by Joshua Lim, Head of Derivatives at Genesis Global Trading.

 

The attacker then used 5 million USDC in collateral from a second account to buy 483 million MNGO perpetual contracts at $0.03 each at 6:24 PM ET.

 

At 6:26 PM E.T., the attacker started pushing the price of Mango on the spot market up to $0.91, increasing the value of 483 million MNGO to $423 million. The attacker then borrowed $116 million, draining Mango's coffers to a negative net worth of $116.7 million. The following assets were depleted: USDC, MSOL, SOL, BTC, USDT, SRM, and MNGO.

 

How Mango Markets is handling the $100M hack


The network promptly used Twitter to inform its users of the hack. The platform said it was looking into the attack and trying to freeze the escaping funds. Mango Markets tweeted further action steps,

 

 

The platform also tweeted that the hacker should contact them to "discuss a bug bounty" while also warning users not to make deposits into Mango.

 

The MNGO token, the native currency of the Mango Market, saw a significant price drop, as was widely predicted. As of the time of this writing, the asset was trading at $0.02454, down 38.64% on the day.

 

Source: CoinMarketCap

 

The asset's price reached a high of $0.08986 and a low of $0.0174.