Ramon Recuero, co-founder of Kinto, a modular exchange platform in the Arbitrum ecosystem, tweeted about the recent attack, stating that the hacker exploited a vulnerability on Arbitrum that allowed unlimited minting of K tokens. The attacker minted 110,000 K and launched an attack targeting the Morpho Vault and a Uniswap v4 pool. The incident resulted in approximately $1.55 million in losses (ETH and USDC) and caused significant volatility in the price of the K token.