A crypto trader on GMX exchange leveraged the zero slippage characteristic to extract over $565,000 in revenue by manipulating the price of the AVAX token.

GMX is a decentralized alternate that permits customers to execute trades at zero slippage. Traders on the platform are ready to execute trades on the identical price it was initiated.

Head of derivatives at Genesis Trading, Joshua Lim, explained that the savvy trader manipulated GMX’s AVAX-USD price by opening massive positions at zero slippage.

The trader used roughly $4.7 million to transfer AVAX’s price in an extended and brief place for 5 consecutive trades.

Due to GMX’s design, the price affect was not factored in, as AVAX traded between $18.33 and $18.68 throughout the interval of the incidence. The trader reportedly made between $500,000 and $700,000 revenue from the manipulation.

Lim defined that the incident was not an exploit because the trader solely manipulated a loophole in GMX’s design which was “working as designed!”

GMX  strikes to cap AVAX commerce

Conversely, GMX has introduced that it’s actively working to resolve the scenario. A GMX developer added {that a} viable resolution might be revealed in about two weeks.

To curb additional exploits, GMX has positioned a restrict on the tradable quantities for AVAX at $2 million for lengthy and $1 million for brief positions.

Some group members mentioned GMX was transferring too slowly because the loophole was found “weeks ago.”

According to Cryptoslate information, $AVAX is at the moment buying and selling at $16.87, shedding off over 7% within the final 24 hours. GMX alternate’s native token $GMX is sitting at $39,9, exhibiting a decline of 10% for the reason that incident occurred.

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