Mango Markets was hacked for $100 million by Solana DeFi’s trading platform

A $100 million attack on Mango Markets this week resulted in the loss of $100 million in funding. The Mango Markets tweeted Tuesday evening that an Oracle price manipulation enabled a hacker to empty funds from Mango.

As reported by OtterSec, the attacker temporarily raised the value of their collateral and then borrowed money from the Mango treasury.

The Mango Markets platform is a Solana-based platform for trading digital assets on spot margin and trading perpetual futures. The Mango DAO is responsible for governance.

Lim explained that the attacker subsequently offered out 483 million MNGO perps (perpetual contracts) on Mango Markets. As a result, the attacker funded a second account with 5 million USDC collateral to buy 483 million units of MNGO perps for $0.03 each.

The attacker moved the Mango spot market price to $0.91 at 6:26 PM ET, valuing the 483 million MNGOs at $423 million.

The attacker then borrowed $116 million from Mango, leaving it with a -116.7 million negative balance. As a result, all of Mango’s liquid assets have been drained, including USDC, MSOL, SOL, BTC, USDT, SRM, and MANGO.

In response, Mango Markets has disabled deposits and is attempting to freeze third-party funds.

A Twitter user pointed out that the attacker received 5.5 million dollars from FTX, prompting FTX CEO Sam Bankman-Fried to respond that the company is looking into it. 

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