Resupply protocol exploited for $9.5M by way of value manipulation

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An attacker manipulated token costs to distort trade charges and drain about $9.5 million from decentralized stablecoin protocol Resupply.

The exploit was first flagged on June 25 by safety platform BlockSec Phalcon, which detected a suspicious transaction resulting in a $9.5 million loss. Resupply protocol confirmed the incident on X shortly after, claiming that the affected smart contract had been paused and that the assault solely affected its wstUSR market. The workforce additionally acknowledged {that a} thorough autopsy is in progress and that the core protocol remains to be operational.

While an in depth breakdown remains to be pending, preliminary evaluation from safety researchers factors to a basic case of value manipulation inside a low-liquidity market. The exploit focused cvcrvUSD, a wrapped model of Curve DAO’s (CRV) crvUSD token staked by way of Convex Finance.

Analysts say the attacker manipulated the share value of cvcrvUSD by sending small donations, which artificially inflated its worth. Because Resupply’s trade price system relied on this inflated value, the system grew to become susceptible.

The attacker then used Resupply’s smart contract to borrow 10 million reUSD, the platform’s native stablecoin, with only one wei of cvcrvUSD as collateral. The borrowed reUSD was shortly swapped into different belongings on exterior markets, leading to a internet lack of almost $9.5 million.

Additional investigation revealed that the attacker exploited an empty ERC4626 wrapper that was serving as a value oracle within the CurveLend pair of the protocol. This allowed the value of cvcrvUSD to spike utilizing simply two crvUSD, bypassing the same old collateral necessities.

This incident provides to a rising development of value manipulation assaults in 2025. Similar exploits have just lately affected protocols reminiscent of Meta Pool and the GMX/MIM Spell ecosystem, which have been each compromised because of oracle vulnerabilities and low-liquidity token manipulation.

Weak pricing mechanisms and flash loans stay widespread instruments for attackers, who proceed to focus on DeFi techniques with skinny buying and selling volumes regardless of passing contract safety audits. Resupply has not but confirmed whether or not person funds can be reimbursed or if restoration efforts are underway.

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