Ostium Says Price-Feed Infrastructure Breach Drained $23.75M From LP Vault; Trader Positions Unchanged

Ostium has issued an update on a security incident affecting its price data infrastructure, Mars Finance reported. The protocol said its liquidity provider vault was compromised on July 15, leading to a loss of 23,752,746 USDC. Preliminary findings suggest the attacker penetrated the offchain systems that supply price data to the protocol and submitted falsified price reports. Ostium said this allowed the attacker to rapidly open and close large positions and siphon artificially generated profits from the vault. Ostium emphasized that trader collateral is held in separately isolated smart contracts and was not impacted. All open positions remain active. The team halted trading and froze all trading contracts within 60 minutes of the first malicious transaction. The company said it is working with Mandiant, zeroShadow, Collisionless, SEAL 911, and law enforcement, and is coordinating with exchanges, bridge contracts, and stablecoin issuers as the investigation continues. Engineering efforts are focused on repairing and hardening the affected infrastructure ahead of a secure restart. Ostium said it will provide at least 24 hours' notice before unfreezing trading contracts. When trading resumes, existing positions will be marked at the reopening price and will not be affected by price moves during the suspension. Supporting impacted liquidity providers and restoring trading safely remain the top priorities.