On January 4, 2024, Gamma Strategies' hypervisors on Arbitrum were exploited for ~$4.5M via flashloan-induced price manipulation. The vault deposit thresholds were set too high (-50% to +100% price swings), allowing attackers to manipulate underlying asset prices and drain vault positions.

The liquidity management protocol Gamma has been attacked, and its post-mortem indicates that there was a flaw in the deposit agent configuration. This flaw allowed the attacker to manipulate the price up to the price change threshold and mint a disproportionately high number of LP tokens.