Bunni Exploit Leads to $2.3M Losses, Trading Halted

According to the most recent X post by BlockSec Phalcon decentralized trading platform, Bunni has been breached, resulting in losses of around $2.3 million.

ALERT! Our system detected a suspicious transaction targeting @bunni_xyz ’s contract on #Ethereum, and the loss is ~$2.3M. Please take actions ASAP.

— BlockSec Phalcon (@Phalcon_xyz) September 2, 2025

However, a following post from the Bunni Official account notes that the Bunni app has been affected by a security exploit. To avoid more losses, it has paused all smart contract functions on different networks.

The Bunni app has been affected by a security exploit. As a precaution, we have paused all smart contract functions on all networks. Our team is actively investigating and will provide updates soon. Thank you for your patience.

— Bunni (@bunni_xyz) September 2, 2025

Yet, an X account with a username Victor Tran also investigated the breach, saying that it looks like some precision issues got exploited in the Bunni hook, helping hackers to do a lot of withdrawals

1. Bunni is a liquidity hook that runs on top of UniswapV4. Instead of using UniswapV4’s normal system, Bunni has its own liquidity curve called LDF (Liquidity Distribution Function).2. After each trade, Bunni checks if its LDF curve has changed since the last trade. If it has,…

— Victor Tran (@vutran54) September 2, 2025

Further noting that Anw, KEM FairFlow is safe and sound, as long as UniV4 is safe, it is safe.

Security experts are terming the Bunni exploit similar to the PancakeBunny hack in which the bad actors used flash loans to manipulate token prices and mint excessive tokens, resulting in severe losses.

Nevertheless, the information about Bunni’s hacks is limited, and its team is still working on the issue and will be available with more information.

A quick overview of Bunni and its token

As per Etherscan(dot)io, token Bunni(BUNNI) has a maximum total supply of 987,674,417.00701069 BUNNI, and total holders are 299. Yet it is priced at $0.01122 after a decline of 2.7% in the past 24 hours and down by nearly 3.3% in a week.

Data from Coingecko states that the Bunni token has a market capitalization of $8,066,704, total value locked is $50,701,008, with a circulating supply of 718,532,908 BUNNI.

On DeFiLlama, the TVL of Bunni V2 $50.59 million, and its annualized fees are $1.31 million. Dex volume in the past 30 days is $1.016 billion.

On September 01, 2025, a user with the username zefram(dot)eth wrote in his X post that Bunni is winning hard on the USD0/USD0++ pair with Usual money. Doing 4x+ volume compared to the Curve pool with only $8 million liquidity and $42 million on Curve

The swap APR earned is 5.07% and the reward APR is 14.46%. Usual via Usual is 12.67% and oBUNNI is 1.79%.

Data from bunni(dot)XYZ mainnet explorer notes that Bunni USD0- USD0++ has a TVL of $7.85 million, with a volume of $2.18 million, and APR is 18.36%.

Bunni USDC- USDT has a TVL of $849.04k with a volume of $5.61 million and fees of $28.03 with an APR of 1.35%.

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