A hacker has exploited TesseraDAO, a decentralized finance protocol, minting 99 million TSR tokens and immediately dumping them on the market, triggering a near-total collapse in the token's price.
The attacker capitalized on a vulnerability within the protocol's smart contract architecture to arbitrarily create new TSR tokens without authorization. The subsequent liquidation of the minted supply flooded exchanges and liquidity pools, erasing approximately 99% of the token's value and causing severe losses for holders caught in the ensuing price crash.
The exploit highlights persistent security risks in DeFi protocols, where even modest smart contract flaws can result in catastrophic token inflation and value destruction. TesseraDAO has not yet issued a formal statement regarding recovery measures, potential compensations, or a detailed post-mortem of the attack vector, leaving investors and community members without immediate clarity on remediation efforts.