On June 7-8, 2022, Osmosis suffered a $5M liquidity pool exploit where the JoinPoolNoSwap function allowed liquidity providers to withdraw 50% more than they should have. The chain halted for 2 days to prevent complete pool drainage. Osmosis Labs covered all losses using strategic reserves.

Osmosis, the decentralized exchange (DEX) built on the Cosmos network, was shut down just before 3 a.m. ET on Wednesday after attackers exploited a liquidity provider (LP) vulnerability to steal around 5 million Dollar. About an hour after Osmosis tweeted about the attack, 4 hackers accounted for 95% of the total, according to a tweet from Osmosis, Cosmos ecosystem validator FireStake admitted on Twitter, A "momentary error of judgement" led to two members of their team who exploited the vulnerability for roughly $2 million, and they decided to voluntarily return the funds and "fix the problem."