You are viewing a single comment's thread from:
RE: Bounty: Who lost money in the Defi Hack?
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:
- lend (up to 10.000) ETH
- sell on one exchange where the price is high
- buy on another exchange where the price is low
- pay back the (up to 10.000) ETH
- keep the profit of the price difference on the two exchanges.
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.