Trader loses $2M in ‘same-block backrun extraction’ exploit

[Oshosondy]

The trader swapped 1,126.44 of Ether (ETH) but only received 5,776 Lighter (LIT) tokens. In other words on the news: A trader who swapped $2.01 million worth of Ether on a decentralized exchange has been left with just $14,500 worth of tokens after a router directed the order through a low-liquidity pool, allowing an Ethereum block builder to profit massively from a same-block arbitrage trade.

This is not the first time that I have been reading this and it will not be the last time. And this is what people will always say:

One crypto trader noted the $2 million loss could have been prevented had the victim read the transaction route before signing the transaction.

That it can be prevented, but it is happening and causing loss of huge amount of money.

[NeuroticFish]

This is not the first time that I have been reading this and it will not be the last time. And this is what people will always say:

One crypto trader noted the $2 million loss could have been prevented had the victim read the transaction route before signing the transaction.

That it can be prevented, but it is happening and causing loss of huge amount of money.

That can be prevented if the trader knows the technicalities of the transaction. I guess he doesn't.
And then we get surprised that the average Joe stays "on the safe side"... far from crypto.
And we get surprised that some of those who give it a try get hacked, scammed or gets to a loss in a way or another.
Then, since the extra-ordinary sells, we see this in the newspapers, not the millions of trades and billions of transactions that go through with no issues.

[ice18]

That's very unfortunate—a really big loss, especially if that money came from years of hard work.
But why would someone use a DEX to swap such a huge amount? We all know these kinds of incidents can happen on decentralized exchanges. It seems the user may not have been fully aware of the risks or didn't carefully review the transaction details before signing it.

[FinneysTrueVision]

Most DEXs and wallets try to protect users as much as possible from such extreme slippage and from MEV bots. This is not something that can happen so easily just by being careless.

According to a representative of Titan Builder, they refunded 99% of the backrun value to the transaction originator. It is unclear to me who exactly got the refund because the address seems to belong to Gemini exchange.
https://x.com/cryptoquantHQ/status/2074092559958196540

[asriloni]

He should be fine if he was activating the MEV protection. The problem is that i guess his swap app didn't have it. So that's why MEV was backran him.

This is also the reason why DEFI ain't perfect thing. There are still to many loopholes. that's why so many MEV bots exist with the purpose to steal others money.

Hopefully, people will aware about how important the routing + MEV protection.