Is Mirror Protocol undergoing exploit for the second time? Here’s the truth

ambcrypto.com:

Terra hit the bullseye lately, however, the bullseye for all the wrong reasons. Just when Terra thought that its day of difficulties has ended, there was more in store. But what went wrong this time?

Now, the Mirror Protocol allows the trading of synthetic assets, such as stocks and cryptocurrency on the Terra and Terra Classic layer-1 blockchains, BNB Chain (BNB), and Ethereum (ETH). But put that trading on an immediate halt now. Reportedly, at the time of writing, the Mirror protocol was undergoing an attack and might have lost as much as $2 million.

Consequently, MIR tokens went down 5% in the past 24 hours. Thus, trading at $0.30 during press time.

Mirror protocol was drained of four synthetic asset pools due to a pricing error on Luna Classic (LUNC)- the older Terra blockchain. Governance participant ‘Mirroruser’ first flagged this exploit on the protocol’s forum. This got quickly circulated by Twitter user FatMan, who shared it in a series of tweets on 31 May.

— FatMan (@FatManTerra) May 30, 2022

So far, the mBTC, mETH, mDOT, and mGLXY pools on the protocol have lost almost all of their assets valued at over $2 million. But this situation could go further south ‘unless the dev team steps in and fixes the price oracle.’ A bug in the “price oracle” is the main reason behind this heist as explained in the tweets below.