Incident Overview
On October 4, 2025, Abracadabra Money (MIM_Spell) was exploited for approximately $1.7 million due to a critical flaw in the cook function's implementation logic. The attacker bypassed solvency checks by exploiting a vulnerability where status variables could be cleared, allowing unauthorized borrowing of MIM tokens which were then swapped and deposited into Tornado Cash.
The vulnerability existed in the cook function, which allows users to execute multiple predefined operations in a single transaction with shared status variables. The attacker exploited flawed logic where action sequences could bypass insolvency checks. Specifically, when action=5 (ACTION_BORROW) was executed, the status.needsSolvencyCheck flag was set to true.
However, by following with action=0, the internal _additionalCookAction function was called, which defaulted to returning status.needsSolvencyCheck = false, overwriting the check flag. This allowed the attacker to borrow 1,793,755 MIM tokens without triggering solvency verification. The exploit was executed across 6 different addresses using the action sequence [5, 0].
The stolen MIM was immediately swapped for 347.1 ETH via Uniswap V3 and deposited into Tornado Cash. Abracadabra paused all contracts following the incident and reportedly bought back MIM to cover the full amount.
Incident Report
Protocol Information
What the Attacker Needed to Succeed
Understanding the prerequisites for this type of attack helps auditors identify protocols that are most at risk and helps developers build better defenses.
What Auditors Should Check
If you're auditing a protocol with similar architecture to Abracadabra Spell, these are the critical security checks that could have prevented this incident (October 2025).
- Verify all logic paths related to Sequential State Manipulation Exploit / Other are guarded by proper access controls and input validation
- Review privileged functions (owner, admin, governance) for potential abuse vectors - centralization risks should be documented and bounded with timelocks or multi-sigs
Master these auditing techniques with hands-on labs and real exploit scenarios in the Smart Contract Hacking course.
Free TrialSecurity Audit History
- Audit Report 1 Report
Proof-of-Concept Exploits
Sources & References
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