Bounty: Who lost money in the Defi Hack?
Something interesting happened today that has been described a bunch like here:
Someone made about 350k shorting and crashing the market without financial risk, because they were able to borrow the money in a flash borrow, which means they did not need collateral.
What is not described in all these descriptions is how the money was made or who lost it.
If the profit comes from the short alone, does this mean the attacker just wiped the entire order book and margin called every long?
What exactly happened. Who was the money stolen from.
I‘d appreciate an explanation.
It's indeed not easy to understand because a flash loan must be paid back in the same transaction as far as I understood.
What was done:
So the profit simply came from the price difference of two exchanges and actually nobody was really hurt - except that the people selling on the low-price exchange could have made more money if they had sold their ETH on another exchange. But that was their own choice.
But all this in one transaction - hmmmmm
STEEM ON!!!
This cannot be right. They shorted the market. Then must have closed the short. But in order for the other side to take that price people must have gotten liquidated.
Else i don't see how this works.
Ah - ok. Thanks for clarifying.
Makes indeed more sense.
Yes, that part doesn’t seem to be explained.
Also, the official statement says no user lost any money (zero losses). That can't be true, can it?
Right this is what is confusing me.
The loans cannot be affected....
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I think You'll find This Post by @kingscrown gives some explanation on how he did it.
Cheers!
Thanks.
I still don't get how the money was made. It seems to be implies that the money comes from going short. That means someone must have been long and margin called, but this fact is never mentioned, hence this post.
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