📉 A hacker crashed the price of the meme coin Normie by 99% in one minute. The attacker exploited a loophole in the smart contract mechanism to conduct a flash loan attack, which allowed him to significantly increase the supply of Normie.

Recently, the meme coin Normie experienced a catastrophic crash in value, dropping by 99% within a minute due to a flash loan attack. This attack exploited a vulnerability in the smart contract mechanism of the Normie coin, allowing the hacker to significantly increase the token's supply. Flash loan attacks, a common issue in decentralized finance (DeFi), involve borrowing large amounts of cryptocurrency without collateral, manipulating prices or exploiting contract vulnerabilities, and repaying the loan within the same transaction.

In this particular case, the attacker took out a substantial flash loan, used it to manipulate the price of Normie, and then returned the loan, making a significant profit and causing the token's value to plummet. This type of attack is challenging to defend against because it relies on executing all steps in a single transaction, thus exploiting transient liquidity.

The incident highlights ongoing security challenges within the DeFi space, where rapid innovation sometimes outpaces the implementation of robust security measures. The Normie coin's crash is a stark reminder of the vulnerabilities that can be present in smart contracts and the need for more rigorous security audits and protective mechanisms in DeFi protocols.