Price manipulation on the AVAX/USD pair is purportedly occurring in significant trades on the decentralized exchange GMX.

Between 01:15 AM and 02:15 AM on September 18, the crypto investment community encountered a strange phenomenon on the price chart of Avalanche (AVAX). That is, the price of this coin rises and falls rhythmically, forming 5 very similar waves.

Then someone came up with a reason for the above price movement. According to Twitter account @BarryFried1, the AVAX price was manipulated to make a profit on GMX. @BarryFried1 claims the manipulator was able to profit about $565,000 from this action.

@BarryFried1 later had to delete his post out of concern that it could become a tool for misinformation to spread until the GMX development team officially spoke about the incident.

PeckShield, a blockchain security startup, tweeted earlier today, “Seems like $GMX on Avalanche exploited, resulting in ~$565k profit. Be Alert.” The tweet has subsequently been removed, and the DEX has tweeted that they are evaluating the incident.

Another Twitter user, @derpaderpederp, also noted the alleged issue.

The GMX team later said that they had been notified of the issue and were investigating, in the meantime AVAX order size would be limited to $2 million for longs and $1 million for shorts.

GMX is a decentralized exchange that charges a minimal price for trading perpetual futures and spot contracts. It is powered by Arbitrum and Avalanche. Users can borrow up to 30x their original margin to increase their futures betting. Chainlink price oracles are used by GMX to obtain aggregated pricing for its assets.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

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Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.

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DeFi

GMX Accused Of Price Manipulation AVAX

Price manipulation on the AVAX/USD pair is purportedly occurring in significant trades on the decentralized exchange GMX.

Between 01:15 AM and 02:15 AM on September 18, the crypto investment community encountered a strange phenomenon on the price chart of Avalanche (AVAX). That is, the price of this coin rises and falls rhythmically, forming 5 very similar waves.

Then someone came up with a reason for the above price movement. According to Twitter account @BarryFried1, the AVAX price was manipulated to make a profit on GMX. @BarryFried1 claims the manipulator was able to profit about $565,000 from this action.

@BarryFried1 later had to delete his post out of concern that it could become a tool for misinformation to spread until the GMX development team officially spoke about the incident.

PeckShield, a blockchain security startup, tweeted earlier today, “Seems like $GMX on Avalanche exploited, resulting in ~$565k profit. Be Alert.” The tweet has subsequently been removed, and the DEX has tweeted that they are evaluating the incident.

Another Twitter user, @derpaderpederp, also noted the alleged issue.

Seems like @GMX_IO got exploited on $AVAX and are now drastically reducing OI availability on $AVAX trading.
Who could have seen this coming???https://t.co/UDvR4A5BVd

Very bad management of the @GMX_IO team after they were warned weeks and months ahead.

Oh well… https://t.co/P0TZSFeWKN

— Midgetwhale (@derpaderpederp) September 18, 2022

The GMX team later said that they had been notified of the issue and were investigating, in the meantime AVAX order size would be limited to $2 million for longs and $1 million for shorts.

https://twitter.com/GMX_IO/status/1571439325413511169

GMX is a decentralized exchange that charges a minimal price for trading perpetual futures and spot contracts. It is powered by Arbitrum and Avalanche. Users can borrow up to 30x their original margin to increase their futures betting. Chainlink price oracles are used by GMX to obtain aggregated pricing for its assets.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Harold

CoinCu News

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