Within the second $100 million DeFi hack this week, Mango Markets was drained of $100 million in funds as a consequence of an exploit. Mango Markets tweeted Tuesday night {that a} hacker was in a position to empty funds from Mango through an oracle worth manipulation.

Solely final Thursday,$100 million was stolen from the Binance Good Chain, one other DeFi protocol.

Based on the blockchain auditing web site OtterSec, the attacker briefly drove up the worth of their collateral after which took out loans from the Mango treasury.

Mango Markets is a Solana-based platform for buying and selling digital property on the Solana blockchain for spot margin and buying and selling perpetual futures. Mango Markets is ruled by Mango DAO.

“It is an financial design flaw,” OtterSec founder Robert Chen informed Decrypt through Telegram, including that it is a danger that Mango Markets had already acknowledged.

“At 6:19 PM ET, an attacker funded account A with 5mm USDC collateral,” the Head of Derivatives at Genesis International Buying and selling, Joshua Lim, tweeted.

As Lim defined, the attacker subsequently supplied out 483 million models of MNGO perps (perpetual contracts) on the Mango Markets order ebook. Then at 6:24 PM ET, the attacker funded one other account with 5 million USDC collateral to purchase these 483 million models of MNGO perps for $0.03 per unit.

At 6:26 PM ET, the attacker began transferring the Mango spot market worth, driving the value to $0.91 and the worth of the 483 million MNGO to $423 million.

The attacker then took out a $116 million mortgage, leaving Mango’s treasury with a unfavorable steadiness of -116.7 million. Belongings drained embody USDC, MSOL, SOL, BTC, USDT, SRM, and MNGO, wiping out all of Mango’s liquidity.

In response, Mango Markets says it has disabled deposits and is taking steps to have third-party funds frozen.

A Twitter consumer famous that the attacker was funded 5.5M from FTX, prompting FTX CEO Sam Bankman-Fried to reply that the corporate is investigating.

Mango Markets has supplied the attacker the prospect to gather a bug bounty in alternate for returning the stolen funds.

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