What happened in the FLOW network exploit?

A vulnerability on the Flow network reportedly enabled attackers to extract about $3.9 million. Liquidity thinned and prices fell over 40% as market makers stepped back. Exchanges and developers began investigations, with some platforms pausing deposits and one major venue signaling trade reversals to protect customers.

Why did Bybit reverse trades related to the incident?

Bybit cited user protection and market integrity. During extreme moves with thin order books, fills can become disorderly or reflect manipulated flows. A targeted reversal seeks to correct unfair executions. Each venue’s rulebook defines how snapshots, eligibility, and final settlements are determined after an incident.

How should US traders manage risk after this event?

Reduce size, avoid market orders, and prefer stop-limit entries. Check venue rulebooks on errors, clawbacks, and circuit breakers. Keep only active balances on exchanges, enable withdrawal allowlists, and monitor funding, open interest, and spreads for stabilization signs before scaling risk back into smaller-cap assets.

What signals could show stabilization in FLOW?

Watch for a clear Flow Foundation update on patches and audits, deposit and withdrawal resumptions at major exchanges, normalizing funding rates, narrowing spreads, and steadier order book depth. If DAXA risk warnings fade and cross-venue prices converge, confidence and liquidity are likely returning.

Global Market Insights

FLOW Today, December 28: Bybit Reverses Trades After $3.9M Exploit

ByHuzaifa Zahoor December 28, 2025December 28, 2025

The FLOW network exploit roiled crypto markets today, with an estimated $3.9 million loss and a 40% plunge in the FLOWUSD pair. Bybit said it would reverse related trades, while Korea’s Upbit and Bithumb paused deposits under a DAXA risk warning. For US traders, the event highlights venue rules, liquidity shocks, and the balance between user protection and decentralization. We break down the facts, the trade implications, and what to watch for from any Flow Foundation update in the hours ahead.