Ostium, a decentralized perpetuals exchange on Arbitrum, lost approximately 18 million USDC after an attacker manipulated its price feed system.
An attacker exploited Ostium's PriceUpKeep forwarder, a component of its automated price-reporting infrastructure, to submit oracle reports with manipulated future timestamps. The falsified data created the appearance of profitable trades and triggered an 18 million USDC payout from the protocol's liquidity vault.
Blockchain security firm Blockaid detected the incident, which occurred on the Arbitrum network. Ostium paused trading after the exploit was reported.
The attack follows a similar 6 million dollar drain from Summer.fi last week. Ostium had raised 27.8 million dollars in funding and processed over 50 billion dollars in trading volume prior to the incident.
