The decentralized perpetual exchange GMX faced a significant security breach that resulted in a steep decline in its token’s value. Following the hack, the price of GMX plummeted by 20%, triggering investor panic amidst ongoing security concerns.
GMX Suffers $40 Million Hack
On July 9, 2025, GMX announced that its V1 platform and the GLP liquidity pool on the Arbitrum network had been compromised. This led to the unauthorized transfer of approximately $40 million in tokens to an unknown wallet.
The GLP pool of GMX V1 on Arbitrum has experienced an exploit. Approximately $40M in tokens has been transferred from the GLP pool to an unknown wallet.
Security has always been a core priority for GMX, with the GMX smart contracts undergoing numerous audits from top security…
— GMX 🫐 (@GMX_IO) July 9, 2025
Following the breach, GMX confirmed via a post on social media that trading, minting, and redeeming of GLP on Arbitrum and Avalanche were temporarily suspended to mitigate further risks.
Cybersecurity firm SlowMist commented on the incident, stating, “The root cause of this attack stemmed from a design flaw in GMX v1, where short position operations immediately updated global short average prices, directly impacting asset calculations and allowing for manipulation of GLP token pricing.”
The attacker utilized Keeper’s ability to activate timelock.enableLeverage, executing massive short positions that artificially inflated GLP prices, subsequently profiting from redemption operations.
GMX’s response included a commitment to investigate the incident with security partners and promised a detailed update. They already implemented stricter limits on GMX V2 token minting on Arbitrum and Avalanche, and a follow-up notification will be sent once these restrictions are lifted.
GMX has updated the ceilings for GM tokens due to precautionary measures. New token minting is currently limited in most liquidity pools.
Market Reaction: GMX Price Drops 20%
The market’s reaction to the breach was predominantly negative, with GMX’s price dipping significantly while other cryptocurrencies showed resilience. According to CoinMarketCap data, the GMX token experienced a double-digit decline.
The price initially hovered above $14.54 but fell over 20%, reaching a low of $10.40.
This incident adds to the ongoing challenges faced by major crypto protocols, with prior hacks, such as that of the Cetus Protocol, highlighting the risks within the decentralized finance sector.
Unless GMX successfully retrieves the lost funds or enhances its security measures, the negative market sentiment is likely to weigh heavily on its price trajectory. Currently, GMX trades near $11.45, still under pressure after falling from over $14.54.
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