{"id":262830,"date":"2022-09-19T19:45:14","date_gmt":"2022-09-19T18:45:14","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=262830"},"modified":"2022-09-19T20:25:55","modified_gmt":"2022-09-19T19:25:55","slug":"crypto-trader-exploits-gmx-manipulates-avax-price-to-remove-565k","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/crypto-trader-exploits-gmx-manipulates-avax-price-to-remove-565k\/","title":{"rendered":"Crypto trader exploits GMX, manipulates AVAX price to remove $565K"},"content":{"rendered":"

A crypto trader on GMX exchange<\/a> leveraged the zero slippage feature to extract over $565,000 in profit by manipulating the price of the AVAX token.<\/p>\n

GMX is a decentralized exchange that allows users to execute trades at zero slippage. Traders on the platform are able to execute trades at the same price it was initiated.<\/p>\n

Head of derivatives at Genesis Trading, Joshua Lim, explained<\/a> that the savvy trader manipulated GMX's AVAX-USD price by opening large positions at zero slippage.<\/p>\n

The trader used roughly $4.7 million to move AVAX's price in a long and short position for five consecutive trades.<\/p>\n

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5\/ this isn't an exploit as much as GMX working as designed! X executed large trades in against GLP holders with 0 slippage: at the oracle price without factoring any price impact<\/p>\n

in the real world, putting on risk requires you to pay liquidity providers on the opposite side<\/p>\n

— Joshua Lim (@joshua_j_lim) September 18, 2022<\/a><\/p><\/blockquote>\n