In another blow to the decentralized finance (DeFi) sector, Bunni DEX, a Uniswap V4-based decentralized exchange, has announced its permanent shutdown following an $8.4 million exploit that crippled its operations. The team cited an inability to cover relaunch and audit costs, marking one of the most significant DeFi collapses of 2025.

The exploit, which occurred on September 2, targeted Bunni’s Liquidity Distribution Function (LDF), a custom mechanism designed to optimize liquidity for traders.

Hackers used flash loans to manipulate internal calculations, triggering rounding errors that allowed them to drain funds across Ethereum and Unichain networks. Despite prior audits by Trail of Bits and Cyfrin, the logic-level flaw went undetected.

Users Allowed Withdrawals, But Recovery Looks G

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