According to crypto.news, on August 13, 2025, GMX approved a $44 million compensation scheme for GLP holders on Arbitrum who were affected by the July V1 exploit. Announced via X by @GMX_IO, the payout in GLV tokens fully reimbursed affected wallets. GMX V2 remained secure, with rising volumes. The plan included $500,000 in retention incentives and $2 million from the DAO treasury.
A re-entrancy flaw in GMX V1’s GLP pool allowed an attacker to drain $42 million in BTC, per Cointelegraph. GMX has suspended GLP trading on Arbitrum and Avalanche. After negotiations, the attacker returned $37.5 million for a $5 million white-hat bounty, per @GMX_IO. The GLV payout, approved via Snapshot, mirrors GLP’s mix: 25% WBTC, 25% ETH, 50% stablecoins. The DAO burned 29% of GLP held by the white-hat to restore value, per The Block.
According to DefiLlama, the exploit reduced the price of GMX tokens by 28%, with TVL plummeting from $480 million to $409 million. Recovery has been strong, with TVL now over $600 million. GMX V2, unaffected, sees robust trading, handling billions weekly, per @GMX_IO. GLP redemptions resume in 10 days, with DeFi protocol solutions in progress. V1 is set to sunset as focus shifts to V2, per Cryptopolitan.
GMX’s payout sets a DeFi accountability standard, boosting trust, per CoinDesk. Arbitrum’s $1.72 price and $2.1 billion market cap remain stable, per CoinGecko. Investors should monitor GLV retention incentives via app.gmx.io and track ARB support at $1.65, per TradingView. Following @TheBlock__ on X for updates and diversifying into ETH or stablecoins can reduce risk. Regulatory scrutiny, like SEC’s DeFi focus, remains a concern, per Coinlaw.io.
