Flow Network Exploit Triggers Panic Selling, Leading to a 46% Price Drop

As the adoption of cryptocurrencies increases and usage becomes more widespread, the associated risks in the digital space are also on the rise. In recent years, incidents of crypto hacking have surged dramatically. According to TRM Labs, more than $2.7 billion in crypto was exploited in 2025 alone, with Chainalysis reporting a 51% increase in crypto hacks from North Korea, escalating from $1.4 billion to $2.02 billion.

Key Takeaways

Flow blockchain suffered an exploit resulting in the loss of $3.9 million.
The incident led to a severe decrease in the price of FLOW, dropping 46%.
User balances remained unaffected by the security breach.
Panic selling dominated the market, with significant capital outflows.
The potential for market recovery remains uncertain, depending on market sentiment.

Flow Network exploit triggers panic selling, plunges price by 46%

Now, the Flow blockchain has become the latest victim of such attacks.

Flow Network Exploit Results in $3.9 Million Loss

On December 27, the Flow Foundation announced that an attacker had exploited a vulnerability within Flow’s execution layer, successfully moving $3.9 million off the network. Forensic analysis revealed that the stolen funds were funneled through several bridges, including Celer, Debridge, Relay, and Stargate. These funds were subsequently laundered through Thorchain and Chainflip.

Fortunately, the attacker’s wallet was quickly identified and flagged, leading to a freeze request to major exchanges like Circle and Tether. As a precaution, the network halted all exit pathways, effectively preventing further unauthorized transactions. Consequently, exchanges Upbit and Bithumb suspended deposits and withdrawals for the FLOW token. Notably, all user balances remained unaffected during this incident.

FLOW Price Hits New Low

The security breach had a significant impact on the price action of Flow. Following the exploit, the price of FLOW dropped by 46%, falling from $0.17 to a new all-time low of $0.097; however, it experienced a slight rebound. As of the time of writing, FLOW was trading at $0.117, reflecting a 32.54% decrease in daily price charts. Additionally, the market capitalization shrank from $284 million to $164 million, indicating substantial capital outflows.

What triggered this price drop?

In the wake of the security incident, both holders and traders engaged in aggressive selling, spurred by panic and fear of further losses. Data from Coinalyze indicated that sellers outnumbered buyers on major exchanges such as Binance, Kraken, and Coinbase.

Flow buy sell volume

According to the stats, the altcoin experienced a sell volume of $405 million compared to a buy volume of only $382 million, resulting in a sell bull delta of $23 million, highlighting the intense selling pressure.

Is a Market Recovery Possible After the Decline?

The decline in FLOW was exacerbated by panic among holders and market participants, who rushed to liquidate their assets post-incident, concerned that further losses were imminent. This selling pressure intensified, as demonstrated by the Directional Movement Index (DMI), which fell to 5, indicating strong downward momentum.

Flow RSI & DMI

Simultaneously, the Relative Strength Index (RSI) also dropped from 29 to 19, signaling that the asset was deeply entrenched in oversold territory. Such declines in momentum indicators suggest a weakened market sentiment, revealing a heightened likelihood of continued bearish trends.

If fear continues to plague the market, FLOW might see prices slip once more, potentially breaking through the support level of $0.1. However, should this downturn attract discount buyers, there may be a path for recovery, allowing FLOW to reclaim previous levels around $0.17.

Conclusion

In conclusion, the exploit on the Flow blockchain has triggered a significant wave of panic selling, resulting in a sharp decline in the price of FLOW. While the immediate future looks uncertain, the potential for recovery remains dependent on market sentiment and buying behavior. The crypto community will be closely watching how the situation unfolds in the coming days.