Gamma Strategies Hack

Reported loss $6.2M
Arbitrum
Flash-loan-assisted vault share inflation through price-limit and ratio-checker failure

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.

Technical root cause

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.

How it happened

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.

Protocol details

Classification Price manipulation / protocol logic and share accounting
Protocol Type Liquidity manager
Affected asset / contract GAMMA
Implementation language Solidity
Protocol links Website @GammaStrategies
Attacker Address 0x5351536145610aA448A8bF85BA97C71cAf31909c

Security review history

Evidence

Proof of concept

1 available

Sources

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