GMX prices fell 20% after the decentralized permanent exchange received a $40 million exploit on the V1 platform.
Investor panic and concerns over repeated security incidents have put the bull under pressure of nearly $11.45.
GMX’s response to stabilize confidence and reduce further losses is important.
A permanent and spot exchange on the chain, GMX has experienced a substantial security breaches.
The exploit, which lost about $40 million, caused a sharp drop in the value of the GMX token.
As far as hacks are concerned, the incident further highlights the risks and impacts of persistent vulnerabilities within the decentralized financial sector.
In such news, prices are often immersed in sharp detail.
GMX was hacked for $40 million
On July 9, 2025, GMX announced that the V1 platform and GLP liquidity pool on the Arbitrum network have been compromised, and the unauthorized transfer of approximately $40 million tokens has been compromised on unknown wallets.
Arbitrum’s GMX V1 GLP pool has been experiencing exploits. Approximately $40 million in tokens have been transferred from the GLP pool to an unknown wallet.
Security has always been a central priority for GMX, and GMX Smart Contract has received numerous audits from top security…
– gmxđ« (@gmx_io) July 9, 2025
The GMX team, detailed in the X post, mitigating further risks after the incident, nullifying GLP trading, building and redemption in both Arbitrum and Avalanche.
SlowMist also highlighted the exploits, focusing on X.
“The root cause of this attack comes from a design flaw in GMX V1. This allows short position operations to directly update global short average prices (GlobalShortaveragePrics), which directly affect the calculation of managed assets (AUM) to enable GLP token pricing operations.”
By leveraging the Keeper’s ability to enable Timelock.enableleverage, the attacker created large short positions, artificially inflated GLP prices, and then made profits through reimbursement operations.
Highlighted code snippets from the post show the important sections where global short profit/loss calculations are misused and enable manipulation.
GMX’s responses included a commitment to investigating incidents with the assistance of security partners, and promised a detailed update.
“From a wealth of attention, GMX had already updated the CAPS for GM tokens for Arbitrum and Avalanche’s GMX V2, so now new tokens are restricted in most liquidity pools. Once this restriction is lifted, a follow-up notification will be sent,” the platform writes.
GMX Prices split 20% in market reaction
The response to the GMX holder hack was almost negative, with prices dropping sharply as the DEX protocol slowed down overall crypto bounce.
According to data from CoinMarketCap, GMX tokens experienced a double-digit decline.
It traded above $14.54, but fell more than 20% to a low of $10.40.
GMX violations were added to the list of important Crypto protocol exploits in 2025, and the Cetus protocol could suffer malicious attacks a few months ago.
Negative sentiment can affect prices unless GMX successfully recovers funds or implements robust security enhancements.
Currently, GMX tokens are trading near $11.45, but are under pressure after falling from a high above $14.54.
