The Sui ecosystem experienced a significant crisis due to a $200 million exploit targeting the Cetus Protocol, its largest decentralized exchange. Attackers took advantage of vulnerabilities in Cetus's smart contracts, utilizing spoof tokens to manipulate price calculations, resulting in significant losses across various liquidity pools. Notable Sui tokens like Lofi, Sudeng, and Squirtle saw drastic declines of up to 97% in value within an hour. The attacker's wallet currently holds $164 million, with some funds already bridged to Ethereum. In response to the incident, the Cetus team paused its smart contracts and is investigating the exploit. Experts have criticized the delay in freezing stolen funds and overall response speed from stablecoin issuers like Circle, which took over five hours to react. Despite the turmoil, Sui's native token surprisingly rose 2.2% during this time, indicating potential resilience in the face of this incident.

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