ThetanutsFi's legacy index vault exploited for $2.1M via flash loan attack that manipulated redemption math after token supply near-zero burn.
Security & Exploits ·
ThetanutsFi suffered a $2.1M exploit on its legacy index vault, where an attacker manipulated redemption mechanics after burning the token supply to near-zero levels in order to claim excess underlying assets using flash loans. According to security firm PeckShield, approximately $2M in option tokens have since been whitehatted, meaning the funds were recovered or frozen by protective measures.
The attacker's remaining positions show $105K in USDC converted to roughly 60 ETH, alongside $34K held in option tokens. The redemption vulnerability appears to have allowed the attacker to claim a disproportionate share of vault assets by exploiting the mathematics of the redemption process after artificially reducing the outstanding token supply.
The scope of recovery remains unclear—while the $2M whitehat recovery is noted, it is not stated whether this represents the full amount of stolen funds or whether additional assets remain at risk or have been secured.