Solana’s Loopscale Hacked for $5.8M: Shocking New Details Uncovered

Loopscale, a decentralized finance protocol built on Solana, was struck by a major exploit on Saturday, losing over $5.8 million from its platform.

According to updates shared on X, the root of the breach was linked to a vulnerability in the pricing of RateX-based collateral. The team revealed that an investigation is already underway to determine how the exploit occurred and who was responsible.

Originally launched as Bridgesplit, Loopscale officially debuted its order book-based lending platform on April 10. Backed by $4.25 million in funding from Solana Labs, Coinbase Ventures, and other investors, the protocol aimed to offer more predictable loan terms compared to traditional pool-based platforms like Aave and Solend.

Moreover, Loopscale’s system was subjected to a security audit by OShield earlier this year, during which critical vulnerabilities were identified. Although the protocol’s FAQ claims that all high-risk issues were resolved, a second audit by Sec3 remains ongoing.

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Loopscale Battles Aftermath as More Shocking Details Emerge

In response to the attack, Loopscale swiftly restricted platform features to limit further risks.

Later in the evening, Loopscale re-enabled loan repayments, position top-ups, and loop closures as part of its recovery efforts. Co-founder Mary Gooneratne stated on X that the team is fully mobilized to investigate the breach, secure user assets, and recover lost funds.

Besides Loopscale’s setback, the crypto sector has faced a wave of security breaches throughout 2025. Bybit’s $1.46 billion hack in February remains the largest, followed by recent multimillion-dollar losses at KiloEX and Infini.

Additionally, the incident raises growing concerns over vulnerabilities in DeFi platforms, even those that have undergone multiple audits. Hence, experts emphasize the urgent need for enhanced security protocols across decentralized finance projects.

Conclusion

Loopscale’s $5.8 million loss delivers another stark reminder of the growing risks in DeFi. As investigations continue, users and investors are closely monitoring how the platform plans to recover and protect its future.

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