The GMX crypto token nosedived on July 9 after the popular perpetual exchange on Avalanche and Arbitrum was hacked.
GMX (GMX) token plunged to a low of $10.20, its lowest level since April 7. The token has dropped nearly 40% from its July high and is now down 76% from its November peak.
In an X post, the GMX team confirmed that GMX V1 on Arbitrum had been exploited. Hackers drained approximately $40 million worth of tokens from the GLP pool into an unknown wallet. In response, the protocol paused trading on V1 and halted the minting of GLP tokens.
In a follow-up statement, developers attributed the root cause of the exploit to how the short average price was calculated in GMX V1. As a precaution, they also suspended the mining of new tokens on GMX V2.
Separately, blockchain security firm SlowMist stated that the exploit stemmed from a flaw in GMX’s pricing mechanism.
In it, short position operations immediately update the global short average prices, which then impact the calculation of the assets under management. As a result, this vulnerability allows the manipulation of the GLP token pricing. The statement added:
“Through a reentrancy attack, they successfully established massive short positions to manipulate the global average prices, artificially inflating GLP prices within a single transaction and profiting through redemption operations.”
GMX was a major player in the perpetual exchange industry in the past until companies like Hyperliquid and Jupiter disrupted it. Still, its network handles millions of dollars in volume each day. According to DeFi Llama, it handled transactions worth $179 million in the last 24 hours and $6.4 billion in the last 30 days.
GMX now joins a growing list of exploited platforms in 2025. Bybit suffered an Ethereum (ETH) -related exploit, Coinbase reportedly lost between $180 million and $400 million, and Cetus Protocol was drained for $223 million.
GMX crypto price analysis
The daily chart shows that GMX peaked at $18.11 in June before reversing sharply. That local high aligned with the 23.6% Fibonacci retracement level.
Since then, the token has broken below key support at $12.63, a level that previously held on May 6 and June 23. GMX also fell beneath both the 50-day and 100-day moving averages, further reinforcing bearish momentum.
The path of least resistance now points lower. The next target for sellers is the year-to-date low of $9.70. A break below that level would open the door to further downside, potentially toward $8.
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