On November 17, decentralized exchange dYdX experienced a significant loss of $9 million in user liquidations. The founder of dYdX, Antonio Juliano, believes that this was a targeted attack against the exchange. The incident occurred in the midst of a 43% decline in the Yearn.Finance (YFI) token, which raised concerns about a potential exit scam. The attack specifically targeted long positions in YFI tokens on the exchange, resulting in the loss of approximately $38 million. Juliano suspects market manipulation as the cause of the dramatic drop in YFI and the subsequent trading losses on dYdX. Despite the incident, Juliano assures users that their funds were not affected and that there is still $13.5 million in the v3 insurance fund. The community has raised suspicions about a potential insider job in the YFI market, as some users claim that ten wallets controlled by developers held half of the total amount of YFI tokens. However, further investigation reveals that some of these wallets may actually belong to cryptocurrency exchanges. In response to the incident, dYdX plans to conduct a thorough review of their risk parameters and make necessary changes to their software.

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Information	Details
Geography	Global
Countries
Sentiment	negative
Relevance Score	1
People	Antonio Juliano
Companies	Yearn.Finance (YFI), dYdX, Etherscan
Currencies	yearn.finance
Securities	None