The Osmosis Chain was halted following a $5 million exploit

Following a now deleted post on Reddit, regarding a bug that increases a user’s position by 50% if they would like to add and remove funds to one of Osmosis’ pools, the DEX was exploited for about $5 million. The vulnerability was confirmed by the Osmosis team on Twitter, stating that the chain was halted in an emergency to avoid further damage.

Liquidity pools were NOT "completely drained".

Devs are fixing the bug, scoping the size of losses (likely in the range of ~$5M), and working on recovery.

More info to come. https://t.co/WOu7MMgSUM
— Osmosis 🧪 (@osmosiszone) June 8, 2022

While some users were grateful that Osmosis validators were quick to engage and halt the blockchain, preventing further damage, as all its liquidity pools could have been fully drained, others expressed their dissatisfaction that such a simple bug made it to production.

At the time of writing this article, the Osmosis chain is still halted at block #4713064, making the Osmosis DEX and its native wallet unusable for the time being. A detailed report of the incident and the actions taken is expected to be released by the Osmosis team soon.