Humanity has rebounded sharply following recent security incidents, with a 24-hour gain exceeding 42%, bringing the price back to around $0.50. Despite the project still being affected by the aftermath of the attack, market capital has clearly returned, and the token's market cap has risen again above $800 million.
Attack details have been disclosed.
The incident on June 8 was initially attributed by Humanity Protocol to a targeted phishing attack against one of its directors. An independent investigation by Quantstamp, released on June 12, revealed that the attacker obtained administrative credentials, upgraded the contract to transfer tokens on Ethereum, and minted new H tokens on BNB Chain.
This means the impact of the incident extends beyond a single compromised account, involving contract permissions and cross-chain asset transfers. For the project, security concerns have not yet fully disappeared from the market’s radar, but the price has already recovered from its previous decline.
Derivatives position size increases rapidly
As prices rebound, risk exposure in the derivatives market has also expanded. Data shows that Humanity’s open interest increased by 131% to $213.1 million, indicating that new capital and positions are entering the market, not just rollovers of existing positions.
- 24-hour increase of over 42%
- Open interest rose to $213.1 million.
- Market cap returns above $800 million
When open interest and price rise together, it typically indicates strong market positioning in the current rebound direction. However, rapid accumulation of leveraged positions can amplify subsequent volatility. If sentiment weakens, liquidation pressure may be released rapidly.
Short liquidations drive the rebound
From the perspective of the liquidation structure, recent losses have been concentrated on the short side. As prices continue to rise, short positions are being forced to close, further boosting buying pressure and causing the rebound to occur faster than a typical recovery. In contrast, long liquidations remain relatively limited, indicating that short-term control remains with the buyers.
The article notes that the $0.50 region has re-emerged as a key level; if the price can sustain above this level, the market will look toward the next resistance at $0.718. If leverage continues to build without a corresponding improvement in sentiment, price volatility could also increase significantly.
Overall, Humanity's recent rebound has been driven partly by capital replenishment following the incident and partly by short covering and leverage expansion. Although the short-term price action has recovered much of its losses, uncertainty stemming from the security incident has not been fully resolved.