ChainCatcher report: Security analysis platform GoPlus tweeted that the core cause of the incident—where a user exchanged approximately 1,126 ETH (around $2.01 million) for 5,776 LIT (around $14,000) on Uniswap, resulting in a loss of nearly $2 million—is not a sandwich attack, but rather a backrunner arbitrage within the same block. The routing contract routed a large amount of WETH into an AVAIL/WETH liquidity pool with extremely low liquidity, causing the user to purchase AVAIL at a price roughly 120 times higher than the fair market value. Subsequently, within the same block, a backrunner executed an opposite trade in the pool using a minimal amount of AVAIL at fair market price, withdrawing approximately 1,072 WETH and transferring most of it (around 1,018 ETH) as a builder payment to Titan Builder.
GoPlus: User Loses $2M on Uniswap Due to Low-Liquidity Pool and Backrunner Arbitrage
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Summary
A user lost nearly $2 million on Uniswap after swapping 1,126 ETH for 5,776 LIT. The trade took place in a low-liquidity AVAIL/WETH pool, where the routing contract inflated the price by 120 times. A backrunner then reversed the trade within the same block, siphoning 1,072 WETH. Most of the funds were sent to Titan Builder as a fee. Altcoins with thin liquidity may face similar risks.
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