GMX Exchange Weathers the Storm – Now Surging Past Competitors

GMX just pulled off the ultimate crypto comeback—turning a rough patch into pure momentum. Here's how the decentralized trading platform flipped the script.

From turbulence to tailwinds

After facing liquidity pressures and skeptical whispers (because what's DeFi without a little drama?), GMX's redesigned incentives and razor-focused upgrades sent volumes screaming past previous highs. The platform now handles more perpetual swaps than some CEX dinosaurs—take that, Wall Street knockoffs.

The resilience playbook

No bailouts, no VC sugar daddies—just protocol-level adjustments that actually rewarded loyal users instead of funneling value to insiders. A novel concept!

What's next?

With shorts getting wrecked and open interest ballooning, GMX's proving that decentralized derivatives aren't just a bull market gimmick. Unless the whole system collapses—again—this might be the rare DeFi project that outlasts the hype cycle. Place your bets.

Hack Attack on GMX and Its Aftermath

According to a preliminary investigation by the GMX team, the attacker exploited a re-entrancy vulnerability in the OrderBook contract. By manipulating the average price of a Bitcoin$118,518 short position, they inflated the price of the GLP liquidity coin. This allowed them to withdraw with a profit, collecting USDC, FRAX, WBTC, and WETH coins, ultimately amassing over $40 million in cryptocurrencies. During the incident, trading on GMX V1 and GLP coin minting was halted, with similar actions taken on the Avalanche side as a precaution.

In response to the attack, the project released a message within the blockchain offering the attacker a 10% bounty, amounting to $5 million, promising not to pursue legal action if the remaining funds were returned within 48 hours. The attacker responded the next day, stating, “Okay, the money will be returned later.” This marked the first official signal that the refund process WOULD commence. Simultaneously, the GMX team coordinated with partner exchanges and analysis firms to monitor the flow of funds and verify movements.

Return of Funds Sparks GMX Coin’s Resurgence

On Friday morning, the two FRAX transactions totaling $10.5 million exemplified the seriousness of the bounty agreement. GMX announced that GLP minting and burning transactions on Arbitrum would remain closed until the remaining assets were returned, with existing liquidity allocated for compensating affected users. During this period, users can close their open positions. GMX V1 forks utilizing a similar structure were advised to take additional precautions.

The market reacted swiftly. The exchange’s service coin GMX hit a low of $10.45 post-attack, but strong buying followed the refund news, causing the altcoin’s price to increase by 17% within minutes, according to CoinMarketCap’s data. Since its launch on Arbitrum One in 2021, the project has hosted a total trading volume of $306 billion and an open position of $265 million. The platform’s effort to preserve its reputation renewed investor confidence and reignited security discussions within the decentralized exchange ecosystem.