BSC | PancakeBunny hit by flash loan attack, token price plummets over 90%

When it rains, it pours. The popular liquidity mining platform PancakeBunny on BSC claims to have been attacked. The team stated that the platform was hit by a flash loan attack by hackers and will soon provide a detailed explanation to the community. Currently, the price of Bunny token has plummeted to only $12, a decrease of over 90%.

Attention Bunny Fam

Our project has suffered a flash loan attack from an outside exploiter.

We will be posting a post mortem, in depth analysis, but for the time being we would like to update the community as to how this happened.

— pancakebunny.finance (@PancakeBunnyFin) May 20, 2021

Bunny Attack Situation

The official statement indicates:

• The hacker borrowed a large amount of BNB through PancakeSwap
• The hacker manipulated the USDT/BNB and BUNNY/BNB prices
• The hacker acquired a large amount of BUNNY through flash loans
• The hacker dumped all BUNNY on the market, causing a crash
• The hacker returned BNB through PancakeSwap

Transaction details:

https://bscscan.com/address/0x158c244b62058330f2c328c720b072d8db2c612f

PancakeSwap: We Do Not Have Lending Function

PancakeBunny's description of the attack process does have some issues, claiming to borrow a large amount of BNB from PancakeSwap, which has caused a backlash: because PancakeSwap does not have a lending feature at all.

PancakeSwap states that they do not support general lending functions, and flash loans are only supported on Uniswap v2 on Ethereum.

Seeing a lot of questions regarding this, so here we go:

While #PancakeSwap doesn’t support traditional borrowing/lending, flash loans are supported by default as part of the UniSwap v2 protocol.https://t.co/EiwhM9HrG3 https://t.co/tdk67nwPxt

— PancakeSwap 🥞 #BSC (@PancakeSwap) May 20, 2021

PancakeBunny Locked Assets Plummet Over 60%

BSC suffers heavy losses, with TVL locked assets shrinking significantly, PancakeBunny TVL directly dropping by over 60%: