Price manipulation on the AVAX/USD pair is purportedly occurring in significant trades on the decentralized exchange GMX.
Between 01:15 AM and 02:15 AM on September 18, the crypto investment community encountered a strange phenomenon on the price chart of Avalanche (AVAX). That is, the price of this coin rises and falls rhythmically, forming 5 very similar waves.
Then someone came up with a reason for the above price movement. According to Twitter account @BarryFried1, the AVAX price was manipulated to make a profit on GMX. @BarryFried1 claims the manipulator was able to profit about $565,000 from this action.
@BarryFried1 later had to delete his post out of concern that it could become a tool for misinformation to spread until the GMX development team officially spoke about the incident.
PeckShield, a blockchain security startup, tweeted earlier today, “Seems like $GMX on Avalanche exploited, resulting in ~$565k profit. Be Alert.” The tweet has subsequently been removed, and the DEX has tweeted that they are evaluating the incident.
Another Twitter user, @derpaderpederp, also noted the alleged issue.
The GMX team later said that they had been notified of the issue and were investigating, in the meantime AVAX order size would be limited to $2 million for longs and $1 million for shorts.
GMX is a decentralized exchange that charges a minimal price for trading perpetual futures and spot contracts. It is powered by Arbitrum and Avalanche. Users can borrow up to 30x their original margin to increase their futures betting. Chainlink price oracles are used by GMX to obtain aggregated pricing for its assets.
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