What happened
Gamma Strategies vaults on Arbitrum were exploited for about $6.2 million after a price-change configuration error and a single-sided deposit exception allowed an attacker to manipulate vault pricing and mint disproportionate shares using flash liquidity.
An automation-script arithmetic and configuration error set deposit price-change limits to -50% and +100% instead of the intended 2%. A ratio-checker exception intended to avoid division by zero also allowed deposits in any ratio when vaults were single-sided, enabling manipulated deposits and excessive share minting.
Case & protocol details
Attack Timeline
The attacker borrowed more than $4 million DAI through Uniswap V3 and Balancer, pushed gDAI beyond the Hypervisor tick range, then deposited 270,000 gDAI and 1 wei DAI to mint disproportionate vault shares. They withdrew an outsized portion of DAI, restored the price, and repeated.
The exploit used flash liquidity as execution capital, but did not manipulate an external oracle. It exploited vault ratio and price-limit logic that allowed an unsafe single-sided deposit condition.
Evidence & learning
Attack pattern
Compare incidents →Sources and on-chain records
- report Report twitter.com
- report Gamma Strategies Post-Mortem and Remediation Plan gammastrategies.medium.com
- analysis Web Archive archive.is
- analysis Gamma Strategies Security Review gammastrategies.medium.com
- analysis Gamma Protocol Exploit Analysis blog.verichains.io
- analysis BlockSec Gamma Incident Analysis blocksec.com
- analysis Gamma Exploiter Address etherscan.io
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