TechFlow news: dYdX founder Antonio tweeted that over the past few days, the open interest in YFI on dYdX surged from $800,000 to $67 million. Almost all of this was done by a single individual. Two weeks ago, he attempted a similar attack on dYdX's SUSHI market but failed. The open interest in YFI on dYdX is now higher than on any other exchange.
Prior to the price crash, we did take action to increase the initial margin requirement for YFI, but ultimately failed to prevent the attack. The attacker withdrew a large amount of USDC from dYdX before the price collapse.
The sharp drop in YFI’s spot price appears to be a deliberate attack targeting the large open interest on dYdX. We are still communicating with centralized exchanges, and this information strongly leads me to believe this was a market manipulation carried out by a well-funded attacker aiming to drain dYdX’s insurance pool. We will disclose all relevant information publicly and share it with law enforcement agencies.
