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Pancake Bunny token plummets by 90% after $40 million flash loan attack

Another decentralized finance platform has fallen victim to a notorious flash loan attack and saw its market cap evaporated.

Pancake Bunny token plummets by 90% after $40 million flash loan attack
Bybit

The price of Pancake Bunny (BUNNY), the native token of the eponymous decentralized finance (DeFi) platform based on the Binance Smart Chain (BSC), plummeted by over 90% after it fell victim to a flash loan attack today.

โ€œAttention Bunny Fam. Our project has suffered a flash loan attack from an outside exploiter,โ€ Pancake Bunny tweeted earlier today.

According to the platformโ€™s โ€œpost mortemโ€ report, the attacker initially used PancakeSwap, a decentralized exchange and yield farming platform similarly based on the BSC, to take out a big flash loan in Binance Coin (BNB).

The attacker then used these funds to manipulate prices in USDT/BNB and BUNNY/BNB trading pairs and ultimately bought โ€œa huge amountโ€ of BUNNYโ€”which he then โ€œdumpedโ€ on the market, destroying the tokenโ€™s price in the process. After successfully completing his operation, the attacker then paid back his flash loans.

As a result, the price of BUNNY first quickly pumped from $150 to $240 and then dropped to nearly zero in a matter of just 30 minutes. At press time, the token has climbed back to around $46.50, still down about 70% on the day, according to crypto metrics platform CoinMarketCap.

It is unclear exactly how much money the attacker has managed to snatch away. While some users suggested that he has made off with about $200 million in digital assets, Pancake Bunnyโ€™s own announcement said the lionโ€™s share of the involved funds was used to repay the flash loans. Still, the exploiter transferred at least 114,631 BNB to his own wallet, worth roughly $43 million at current prices.

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Posted In: Exchanges, Hacks, Lending
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