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GoPlus: Only $14,000 was refunded to LIT users due to backrunner arbitrage from choosing low liquidity pools for routing

2026-07-06 15:00:55

The security analysis platform GoPlus tweeted regarding the incident where "a user exchanged approximately 1126 ETH (about 2.01 million USD) for 5776 LIT (about 14,000 USD) on Uniswap, resulting in a loss of nearly 2 million USD." The core reason for this incident was not a sandwich attack, but rather backrunner arbitrage within the same block. The routing contract injected a large amount of WETH into a liquidity-poor AVAIL/WETH trading pool, causing the user to buy AVAIL at a severely deviated market price (about 120 times the reasonable price). Subsequently, within the same block, the backrunner executed a reverse trade on the pool with a minimal amount of AVAIL at the real price, withdrawing approximately 1072 WETH, and paid most of it (about 1018 ETH) as builder payment to Titan Builder.

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