A massive $237,000 on-chain heist: How did it happen?
According to data revealed by on-chain analyst Lookonchain, the attacker targeted a critical vulnerability linked to the Hyperbridge on the Ethereum network. By manipulating the smart contract’s admin rights, the hacker managed to forge messages and mint 1 billion DOT tokens (ERC-20 version) out of thin air.
Immediately following this fraudulent exploit, the hacker liquidated their entire loot in a single transaction. This massive dump allowed them to walk away with 108.2 ETH, worth approximately $237,000. Although the native Polkadot blockchain was not compromised, this exploit highlights the persistent risks associated with cross-chain bridges.
This incident, while smaller in scale compared to historic hacks like Ronin ($625M), Wormhole ($320M), or Nomad ($190M), illustrates the ongoing issue of message verification flaws within bridges.
In 2025, crypto hacks totaled over $4 billion, including $2.67 billion from smart contract exploits, with bridges accounting for roughly 50% of laundered funds. Despite this, DeFi losses dropped to $168M in Q1 2026 (an 89% decrease compared to 2025). However, bridges are increasingly being targeted, with approximately $13.7M stolen in Q1 alone.
DOT price in freefall: Is it going to zero?
The market impact was immediate. Faced with this sudden injection of artificial liquidity, the price of DOT suffered a violent correction. In just a few minutes, the asset plunged by over 7%, dropping from $1.24 to $1.15, before attempting a slight rebound around the $1.20 mark.
This sudden bearish move sent shockwaves across DEXs (decentralized exchanges), where the trading pair narrowly avoided a total crash. Traders are now closely monitoring support levels to see if buyers can spark a rally or if selling pressure will intensify. A return to its ATH seems compromised for now, even in the long term.
Can the price of Polkadot (DOT) survive this historic dump?
From a technical standpoint, the trend for DOT is alarming. It is currently facing massive selling pressure, which will make a rebound extremely difficult in the event of a new bear market. Will DOT be among the altcoins crushed by this bearish trend? DOT is showing several bearish order blocks on HTF. If buyers fail to step in, it could continue its decline toward $0.70 this year.
This attack raises serious questions about the security of wrapped assets and cross-chain infrastructure. While the core of the Polkadot protocol remains intact, investor confidence has taken a severe hit following this forced retracement.
Indeed, in terms of social sentiment, the reaction on X (Twitter) is mixed but largely nuanced: many users are emphasizing the distinction that “Polkadot was not hacked, the Hyperbridge was,” which is helping to limit the panic.
As the crypto market digests this news, volatility is likely to remain extreme for DOT. Will whales accumulate at this discounted price in preparation for the next bull run, or is this the beginning of a deeper plunge? The market’s reaction over the next 24 hours will be decisive for the token’s future.
In conclusion, there is no point in taking risks by trying to buy an altcoin that is already walking a tightrope. Furthermore, this hack could further deter the already scarce buyers.
Related articles:
Related Articles:
