Ostium Issues Attack Update: Price Feed Breach Hit LP Vault, Trader Collateral Not Impacted

Ostium said on July 19 that it has determined its liquidity provider vault was compromised on July 15, resulting in losses of 23,752,746 USDC. Early findings indicate the attacker gained access to the protocol's offchain price-data infrastructure and submitted manipulated price reports. Using the falsified prices, the attacker was able to open and close large positions quickly to extract artificially generated profits from the vault. Ostium said trader collateral is stored in separately isolated smart contracts and was not affected. All trading positions remain open. The team suspended trading and froze all trading contracts within 60 minutes of the first malicious transaction. The project is working with Mandiant, zeroShadow, Collisionless, SEAL 911 and law enforcement, and is coordinating with the trading platform, bridge contracts and stablecoin issuers as the investigation proceeds. Ostium's engineers are repairing and hardening the relevant infrastructure to enable a secure restart. Ostium said it will give at least 24 hours' notice before unfreezing trading contracts. Once trading resumes, existing positions will be marked at the reopening price and will not be affected by price movements during the suspension. The project said its top priorities are supporting affected liquidity providers and restoring trading safely.