Odin.fun Bleeds $7M: Bitcoin Meme Coin Launchpad Hacked in Liquidity Heist
Another day, another DeFi exploit—this time hitting Odin.fun, a Bitcoin meme coin launchpad that just got raided for $7 million.
Hackers drain liquidity pool in midnight smash-and-grab
The attackers exploited a vulnerability in the platform's smart contracts, siphoning funds while the team scrambled to respond. No 'fun' in crypto finance today—just another reminder that yield farming often means fertilizing with your own capital.
Post-mortem reveals critical flaw in token vesting logic
Odin's developers confirmed the breach hours later, though the usual 'we take security seriously' statement rings hollow after seven figures vanish into ether. The exploit targeted the platform's liquidity provisioning mechanism, bypassing standard safeguards.
Will this kill the meme coin craze? Unlikely—degenerates gonna degenerate.
What is a liquidity manipulation attack?
A liquidity attack is when a bad actor moves large amounts of cryptocurrency or cash in a way that reduces the ease of trading on a platform. These types of attacks can cause price swings or force liquidations by leveraged traders.
In the recent case of Odin.fun, hackers used the platform’s automated market Maker to artificially inflate the price of the meme coin SATOSHI•NAKAMOTO ($SATOSHI) and withdraw the liquidity in Bitcoin, according to one Chinese on-chain sleuth.
odinfun平台@Odin_GodOfRunes 疑似出了漏洞，不到2个小时存款从291个BTC骤降至232.8个BTC，少了整整58.2个BTC。昨天还在欢呼新UI上线，今天就成了黑客提款机，币圈就是这么神奇的地方吗？… pic.twitter.com/FC9jro8vcb
— 小巴 (@web3xiaoba) August 12, 2025
Liquidity manipulation-based attacks have continued to crop up over the years. In 2022, DeFi platform Mango Markets lost around $116 million to a similar exploit. Ari Redbord, global head of policy at blockchain security analyst TRM Labs, told Decrypt the recent incident was down to “a flaw introduced during an automated market maker (AMM) update.”
He recommends that platforms protect themselves from these types of attacks by using external price oracles, as well as “setting deposit and slippage limits, monitoring transactions in real time and fully auditing code before deployment.”
Redbord told Decrypt that liquidity manipulation incidents have grown in recent years with the rise of DeFi, as criminals “often target new or lightly audited protocols tied to high-volatility trading, exploiting HYPE and speed to act before detection.”
Redbord said meme coin platforms can be especially vulnerable to these types of exploits as many operate with “shallow liquidity, concentrated token ownership, rushed launches and skipped audits” which can make price manipulation easier and allow the liquidity pool to be “drained in minutes.”
s0xToolman, a psuedo-anonymous analyst at DeFi auditing tool Bubblemaps, remarked on the simplicity of the exploit which was used, saying “anyone having some knowledge on DEX pools WOULD know this.” He told Decrypt “there's no excuse for the team to not know this could happen.”
