The NEM (NemTokenV2) token contract on BSC was exploited via its PancakeSwap USDT/NEM liquidity pool. The contract credited transfers into the LP as sell volume without verifying actual swap settlement. The attacker repeated transfer → skim() → flushLpSellRecycle() 42 times, burning pre-existing LP reserves and syncing lower reserves, then sold the remaining NEM at the inflated price to extract approximately $821,920 in USDT.