The incident began when an attacker deposited $5 million and used a 98-cycle loop to borrow and redeposit TONIC. This manipulation drove the price of the thinly traded token nearly 300 times higher, which was then reflected in Tectonic's price feed.
Tectonic detected the suspicious activity at 12:49 UTC on August 30. Validators responded by halting the network at 14:32:47 UTC, and block production eventually resumed at 23:49:01 UTC after balances were restored.
The rollback restored approximately $111.2 million, but $9.19 million had already been transferred off-network. This represents 7.6% of the total affected borrowing activity, which Cronos officially valued at $120.4 million.
