{"id":67357,"date":"2022-09-19T13:33:21","date_gmt":"2022-09-19T10:33:21","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=67357"},"modified":"2025-09-07T06:12:46","modified_gmt":"2025-09-07T03:12:46","slug":"trader-used-gmx-to-manipulate-avax-price","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/trader-used-gmx-to-manipulate-avax-price\/","title":{"rendered":"Trader used GMX to manipulate AVAX price"},"content":{"rendered":"<p>The decentralised exchange GMX was affected by the actions of a single trader. Earlier, the platform&#8217;s founder ZigZag, who goes by the pseudonym Taureau, warned of possible problems.<\/p>\n<p>An unknown user exploited the &#8216;minimum spread&#8217; and &#8216;zero price impact&#8217; features of the <a href=\"https:\/\/forklog.com\/en\/news\/what-is-avalanche-avax\">Avalanche<\/a> network token (AVAX). The price manipulation affected GLP holders who provided GMX liquidity in the form of AVAX.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">We were notified of price manipulation of AVAX\/USD on reference exchanges by monitoring systems and community members.<\/p>\n<p>While we review the occurrence, open-interest for AVAX has been capped at $2m long \/ $1m short.<\/p>\n<p>GLP and GMX trading markets continue to operate normally.<\/p>\n<p>\u2014 GMX \ud83e\uded0 (@GMX_IO) <a href=\"https:\/\/twitter.com\/GMX_IO\/status\/1571439325413511169?ref_src=twsrc%5Etfw\">September 18, 2022<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;Open interest in AVAX is capped at $2 million on long positions and $1 million on short positions,&#8221; GMX noted.<\/p>\n<\/blockquote>\n<p>Joshua Lim, head of derivatives at Genesis Trading, said that the unknown trader &#8220;successfully earned a profit [\u2026], by opening large positions with zero slippage.&#8221; After that, he moved AVAX\/USD to centralized exchanges and repeated the actions five times.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">3\/ let&#8217;s take a look at the first cycle which took place from 01:15:31 to 01:28:11 UTC. X was able to extract roughly $158k in profit by trading clips of $4-5mm at a time <a href=\"https:\/\/t.co\/W6eu7Iz6lz\">pic.twitter.com\/W6eu7Iz6lz<\/a><\/p>\n<p>\u2014 Joshua Lim (@joshua_j_lim) <a href=\"https:\/\/twitter.com\/joshua_j_lim\/status\/1571554179440599042?ref_src=twsrc%5Etfw\">September 18, 2022<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Lim estimated the trader&#8217;s profit at $500 000-$700 000. He noted that the user &#8220;paid spreads to market makers on other venues, [\u2026] therefore the net income was lower.&#8221; He stressed that this was not an exploit, since &#8220;GMX was functioning as intended.&#8221;<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;The real problem is that GMX does not reflect the true cost of liquidity, as other platforms do, and offers unlimited liquidity at the oracle&#8217;s average price,&#8221; added Lim.<\/p>\n<\/blockquote>\n<p>On 2 September, Taureau questioned whether GMX had built a viable system in the long run.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Has <a href=\"https:\/\/twitter.com\/search?q=%24GMX&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$GMX<\/a> built a viable system for the long-run?<\/p>\n<p>ZigZag Founder <a href=\"https:\/\/twitter.com\/taureau_21?ref_src=twsrc%5Etfw\">@taureau_21<\/a> has his doubts\u2026 and predicts eventually that a trader with the right strategy and proper size will wipe out <a href=\"https:\/\/twitter.com\/search?q=%24GLP&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$GLP<\/a><\/p>\n<p>Full Episode \ud83c\udfa5 <a href=\"https:\/\/t.co\/3k3oLdHFWq\">https:\/\/t.co\/3k3oLdHFWq<\/a> <a href=\"https:\/\/t.co\/MF2Qafxs57\">pic.twitter.com\/MF2Qafxs57<\/a><\/p>\n<p>\u2014 Flywheelpod (@flywheelpod) <a href=\"https:\/\/twitter.com\/flywheelpod\/status\/1565719949435338752?ref_src=twsrc%5Etfw\">September 2, 2022<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Over the past 24 hours the GMX token has fallen about 10.6%, per CoinGecko. From above $48 (18 September) the asset slid to around $39.9.<\/p>\n<p>In April, the CEO and founder of Waves Platform, Alexander Ivanov<a href=\"https:\/\/forklog.com\/en\/news\/waves-founder-accuses-alameda-research-of-manipulating-waves-token\"> accused Alameda Research of manipulating<\/a> the price of WAVES. The head of the company, Sam Bankman-Fried, called such statements &#8220;a poorly staged conspiracy theory&#8221;.<\/p>\n<p>Read ForkLog&#8217;s Bitcoin news in our <a href=\"https:\/\/telegram.me\/forklog\" target=\"_blank\" rel=\"nofollow noopener\">Telegram<\/a> \u2014 cryptocurrency news, prices and analytics.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>GMX, a decentralised exchange, was affected by the actions of a single trader. Earlier, the founder of the ZigZag platform, who goes by the pseudonym Taureau, warned of possible trouble.<\/p>\n","protected":false},"author":1,"featured_media":67358,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[787,1145],"class_list":["post-67357","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-dex","tag-market-analysis"],"aioseo_notices":[],"amp_enabled":true,"views":"35","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/67357","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=67357"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/67357\/revisions"}],"predecessor-version":[{"id":67359,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/67357\/revisions\/67359"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/67358"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=67357"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=67357"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=67357"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}