CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

MNGO token falls 52% after $100m Mango Market exploit

By Raphael Sanis

09:35, 12 October 2022

Mango Markets
Mango Markets is a decentralised finance lending protocol on the Solana blockchain – Photo: Shutterstock

Mango Markets, a lending protocol on the Solana (SOL) blockchain, has been the victim of a $100m hack that has seen its MNGO token plummet.

Two accounts funded with USD Coin (USDC) took out an outsized position in the MNGO and PERP pairing. This manipulated the protocol’s oracles, allowing the attackers to max out their accounts and walk away with a net value of $100m.

The price of MNGO plunged by three quarters after the attack took place on 11 October.

MNGO’s downfall

The Solana-based decentralised finance (DeFi) platform reached a high of $0.08 on 11 October as the attacker manipulated the token’s price. It then closed the day at $0.019, a drop of more than 75%.

MNGO has since recovered slightly. As of 12 October, it was trading at $0.024, but it was still down 41% over the past week.

This exploit also damaged the total value locked (TVL) in the lending protocol. Mango Markets’ TVL plummeted from $104m on 11 October to just $209 the following day, according to DeFi Llama.

The hacker’s ultimatum

Recently, the attacker posted a proposal on Mango Markets’ governance platform. They said the funds would be returned if the protocol uses $70m to pay off bad debt.


0.62 Price
+3.030% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.01168


65,626.85 Price
-0.260% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 106.00


178.53 Price
+2.290% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 2.2652


3,344.71 Price
-4.060% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 6.00

This debt refers to a Solana investor who had to be bailed out after the whale had more than $200m in debt across multiple lending platforms. The bailout was made because of concerns that the investor could become liquidated, sending shockwaves across the market.


The governance post said: “By voting for this proposal, mango token holders agree to pay this bounty and pay off the bad debt with the treasury, and waive any potential claims against accounts with bad debt, and will not pursue any criminal investigations or freezing of funds once the tokens are sent back as described above.”

At the time of writing, approximately 33 million MNGO votes are in favour of the proposal. A total of 66 million votes are needed to pass the proposal.

Mango Markets had previously tweeted its intention to communicate with the hackers and find an amicable solution.

However, the lending protocol has not yet responded publicly to the hacker’s proposal.

Markets in this article

0.6430 USD
-0.029 -4.410%
Solana / USD
178.5345 USD
3.9812 +2.290%

Related topics

Rate this article

Related reading

The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided in this article is for information purposes only and should not be understood as investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents and has not been prepared in accordance with the legal requirements designed to promote investment research independence. While the information in this communication, or on which this communication is based, has been obtained from sources that believes to be reliable and accurate, it has not undergone independent verification. No representation or warranty, whether expressed or implied, is made as to the accuracy or completeness of any information obtained from third parties. If you rely on the information on this page, then you do so entirely at your own risk.

Still looking for a broker you can trust?

Join the 630,000+ traders worldwide that chose to trade with

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading