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XPR Network, a layer 1 blockchain, was exploited after the attacker drained about 1.56 billion XPR, worth roughly $4.03 million, from proton.swaps.The attacker exploited a flaw in its withdrawal function, which accepted negative amounts. This enabled the attacker to manipulate internal balances before withdrawing real tokens.
The attacker then applied this technique across multiple asset pools, including XUSDC, XMD, METAL, LOAN, and bridged assets. Within just 11 minutes of the launch of the attack, the attacker stole more than $9 million in liquidity.
Source: X Meanwhile, 563 million XPR worth roughly $1.46 million moved through the LOAN protocol after the attacker borrowed against stolen stablecoins. That raised the total XPR touched to roughly 2.12 billion, or 6.5% of the circulating supply.
Later on, the attacker moved 764 million XPR, worth roughly $1.98 million, and 150,000 METAL, worth approximately $195,000, to another account.
Network producers later identified the exploit and patched the contract. Ultimately, the incident shows how weak input validation can quickly amplify losses across interconnected liquidity pools.
XPR sell-off tests market confidence The on-chain drain quickly spilled into XPR’s price action, with sellers taking control as confidence weakened. On the 11th of September, the XPR traded near $0.00276 before falling sharply the following day.
The sell-off pushed the price to an intraday low near $0.00242, marking a decline of about 6.5%. However, buyers stepped in after the drop, lifting XPR back toward $0.00259. That rebound remained limited because the token traded below the $0.00271 support level.
Source: TradingView Meanwhile, RSI fell to 27.47, placing XPR in oversold territory and showing heavy selling pressure. Trading activity increased, with turnover approaching $4 million.
Therefore, the rebound signals buying interest, but sustained recovery requires XPR to reclaim $0.00271 and stabilize sentiment.
XPR secures most funds after the drain The funds’ movement after the exploit offers a clearer picture of the damage and recovery prospects. Of the 2.12 billion XPR touched, about 1.80 billion remained in attacker-controlled accounts.
Only 319.5 million XPR reached external venues, limiting the amount that moved beyond network control. This allowed the producers to take action prior to any additional XPR leaving the network. Producers applied a patch to their contract at 21:32 UTC.
Source: X Then, at 23:26 UTC, producers seized the 1.80 billion XPR and placed it under community control. As a result, most of the affected funds remained recoverable. XPR also stabilized near $0.00261–$0.00262 on the 13th of September, suggesting selling pressure had eased.
With most funds secured, the focus now shifts to whether XPR can rebuild liquidity and user confidence.
Final Summary XPR Network lost $9M in the proton.swaps exploit, while XPR fell 6.5% before stabilizing. Most stolen XPR was secured, leaving the network focused on restoring liquidity and trust.