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Trader Loses $2M ETH in Low-Liquidity Swap Routing Error

A decentralized trader lost nearly $2 million on July 7 after a router sent 1,126 ETH through a thin AVAIL/WETH pool, yielding only $14,500 in tokens. The event follows Monday’s $6 million flash-loan drain at Summer.fi that briefly pushed APY to 2,080,000% and adds to 2026 DeFi losses above $840 million. Earlier in the week the UXLINK hacker converted $10.54 million DAI into 6,001 ETH and deposited over 14,300 ETH into Tornado Cash, underscoring persistent laundering and security risks across Ethereum protocols.

Category

Ethereum

Sentiment

Bearish

Event

Security incident

Reading time

1 min