According to CryptoPotato, on November 17th, an unknown individual or team targeted the dYdX exchange and its YFI token. The same actor is believed to have attempted a similar strategy on the exchange's SUSHI market two weeks prior. The platform's staff classified these trades as an attack, which involved a series of transactions that caused open interest on the exchange to surge by over $66 million and resulted in $9 million of its insurance fund being burned to keep it afloat. Fortunately, no user funds were affected by the trade.
In response to the attack, dYdX has implemented stopgap measures to prevent further incidents. Initial margin requirements for trades of less liquid tokens have been increased. The exchange is also investigating the event and searching for the person or team behind the trade. dYdX's Founder, Antonio M. Juliano, stated that his team is handing over the information they have on the author to the FBI. Additionally, any bounties given out will be used to reward community members who help track down the alleged attacker.
The platform has also banned all highly profitable trading strategies, raising questions about how profitable a trade can be before an account is shut down. Meanwhile, Avraham Eisenberg, who executed a similar trading strategy against Mango Markets, has been charged with criminal offenses, but his trial has been postponed, and it is unclear if the government will side with the platform.
