A crypto trader who bragged last month about making off with over $100 million in a Mango Market price manipulation scheme appears to have lost millions on an identical attempt that backfired early Tuesday.
What Happened: According to on-chain data, Avraham Eisenberg, the man behind October’s Mango Market breach, recently borrowed a 40 million Curve CRV/USD from decentralized lending platform Aave.
The hacker wanted to sell-off the tokens, causing CRV’s value to plummet, and make away with millions in short positions on the token, leaving the company saddled with a large amount of bad debt.
See More: Best Cryptocurrency to hedge against inflation
Eisenberg described a loophole in Aave’s lending policies weeks ago that would theoretically allow a scheme like the one attempted by the trader on Tuesday to succeed.
The attempt to squeeze CRV on @AaveAave has been unsuccessful and unprofitable. Despite this Aave has accrued a much smaller insolvent positionOur immediate recommendation is to freeze a number of tail assets on v2 to mitigate the risks of similar, likely unprofitable, squeezes
— Gauntlet (@gauntletnetwork) November 22, 2022
According to Gauntlet, the financial modeling platform employed by Aave, said that Aave emerged relatively unscathed from the incident, and Eisenberg’s short strategy proved unsuccessful. Aave has accumulated a much smaller insolvent position despite the attempt to squeeze CRV being unsuccessful and unprofitable, Gauntlet tweeted.
Price Action: CRV is trading at $0.6464, up 28.94% at the time of writing, according to Benzinga Pro.
Read Next: Cathie Wood Reiterates $1M Price Target For Bitcoin: ‘Sometimes You Need To Go Through Crisis To See Survivors’
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
This article has been originally published at: https://www.benzinga.com/markets/cryptocurrency/22/11/29834951/mango-market-hacker-loses-millions-as-curve-price-manipulation-attempt-on-aave-backfires?SNAPI