THE CHAIN GOT HACKED. THE TOKEN PUMPED 97%. WHAT? 🤔
$INIT is up 97.4% in 24h to $0.3145, with $35.1M in spot volume on Binance. All while its blockchain stopped producing blocks.
📉 What happened
Initia halted its L1 at 06:18 UTC on Nov 10 after finding unauthorized transfers from escrow accounts holding assets bridged to several rollups. The attacker used compromised rollup infrastructure keys to fabricate IBC transfers. Preliminary loss is about $615K, mostly USDC drained via Noble. CertiK counted ~$636K across 16 transfers; the final figure is still unconfirmed (crypto.news).
Second halt in under three weeks: on Oct 23, a MoveVM exploit drained about $2.7M, and the chain only came back Nov 2. Combined losses of about $3.3M now exceed the chain's remaining TVL (Protos).
🔥 Why it matters
A halted chain with a pumping token is a contradiction, and contradictions get traded. Hyperliquid funding on INIT sits at -4,380% annualized, so shorts pay longs ~12% a day to stay short. That is squeeze fuel: every hour shorts bleed, and every cover order pushes the price higher.
My take: this is not the market pricing in a recovery. It is the market pricing in a squeeze, while users still do not know when blocks resume or who repays the drained funds.
⚠️ The trap: a 97% green candle does not mean the chain is fixed. The halt is a protective pause, not a patch, and no restart timeline has been announced.
👀 What to watch
- Restart timeline and the official post-mortem
- Whether Hyperliquid funding normalizes from -4,380%
- $0.3319, the 24h high, vs $0.23 as the next battleground
Bottom line: a hacked chain, a halted network, and a token up 97% in a day. The squeeze explains the price, it does not explain the chain.
Is this a squeeze to fade, or is the market betting the halt protects value? 🐂🐻
Not financial advice. DYOR.
#crypto #INIT #Initia
$INIT is up 97.4% in 24h to $0.3145, with $35.1M in spot volume on Binance. All while its blockchain stopped producing blocks.
📉 What happened
Initia halted its L1 at 06:18 UTC on Nov 10 after finding unauthorized transfers from escrow accounts holding assets bridged to several rollups. The attacker used compromised rollup infrastructure keys to fabricate IBC transfers. Preliminary loss is about $615K, mostly USDC drained via Noble. CertiK counted ~$636K across 16 transfers; the final figure is still unconfirmed (crypto.news).
Second halt in under three weeks: on Oct 23, a MoveVM exploit drained about $2.7M, and the chain only came back Nov 2. Combined losses of about $3.3M now exceed the chain's remaining TVL (Protos).
🔥 Why it matters
A halted chain with a pumping token is a contradiction, and contradictions get traded. Hyperliquid funding on INIT sits at -4,380% annualized, so shorts pay longs ~12% a day to stay short. That is squeeze fuel: every hour shorts bleed, and every cover order pushes the price higher.
My take: this is not the market pricing in a recovery. It is the market pricing in a squeeze, while users still do not know when blocks resume or who repays the drained funds.
⚠️ The trap: a 97% green candle does not mean the chain is fixed. The halt is a protective pause, not a patch, and no restart timeline has been announced.
👀 What to watch
- Restart timeline and the official post-mortem
- Whether Hyperliquid funding normalizes from -4,380%
- $0.3319, the 24h high, vs $0.23 as the next battleground
Bottom line: a hacked chain, a halted network, and a token up 97% in a day. The squeeze explains the price, it does not explain the chain.
Is this a squeeze to fade, or is the market betting the halt protects value? 🐂🐻
Not financial advice. DYOR.
#crypto #INIT #Initia
