The Unfortunate Series of Events

This rollercoaster ride began on October 6, when the BNB Smart Chain’s cross-chain bridge was yanked off the tracks due to a devastating exploit that saw hackers absconding with a staggering 2 million BNB tokens. At that time, these tokens put a whopping $568 million in their hackers’ pockets, making it a steal—literally.

How Much Damage Was Done?

With great hacks come great losses. Immediately following the exploit, the crypto market took a nosedive, dropping 6% and bringing the total market cap down to around $1.1 trillion. In a span of just 24 hours, over $1 billion vanished from crypto holders’ accounts, leaving many traders staring blankly at their screens, contemplating their life choices.

Collateral Damage and Liquidations

In a twist even a screenwriter wouldn’t write, on August 18, the hackers tied to the exploit liquidated over $53 million worth of collateral on the lending platform Venus Protocol. This dastardly deed came after they had taken out a loan of 30 million Tether (USDT) using the stolen tokens as collateral. Talk about borrowing against your wrongdoings!

The BNB Price Plunge

As if the universe wanted to add insult to injury, BNB prices plummeted below $220 after the initial hack. With each dip, the hackers saw their liquidated positions escalate, adding a layer of poetic justice to this chaotic saga. At the time of writing, BNB was trading at $218—perhaps just a few coins shy of their original ambitions.

Whale Watch: Not All Were Affected

Now, let’s take a moment to appreciate one savvy whale. Just days prior to the tumultuous downturn, this whale decided to offload 22,341 Ether (ETH)—worth around $41 million—saving themselves from a fate that could’ve seen them drown in a sea of losses. Yet, even though they avoided a loss of over $5 million, they still faced a minor hit of $1.7 million. It’s always a win-lose scenario in the tumultuous waters of crypto.

The Aftermath and Reflection

So, what have we learned from this financial fiasco? In the world of cryptocurrency, the highs come with the possibility of gut-wrenching lows. While some traders may rue the day they invested, others emerge wiser—or at least more cautious—after their brush with market madness.