Bunni DEX has paused its operations following an exploit that resulted in the loss of approximately $2.4 million in stablecoins. The attack took advantage of a vulnerability in Bunni’s Liquidity Distribution Function (LDF) which is designed to optimize liquidity allocation but was manipulated by the attacker who executed trades of specific sizes. This caused the rebalancing logic to malfunction, allowing the attacker to gradually drain the platform’s funds without early detection. Bunni's team issued a warning to users to withdraw their funds quickly and is conducting an investigation into the incident. Additionally, the exploit highlights an unsettling trend of increasing target attacks within the crypto space, as evidenced by a notable rise in hacking activities in August.

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