Spiral Suffers Loss from Uniswap V4 Pool Manipulation
Spiral experienced a loss of approximately $26,800 due to a manipulation of the Uniswap V4 pool spot price. The attack involved bypassing a guard mechanism to borrow against inflated collateral.
The incident involved Spiral, which faced a loss of around $26,800 attributed to the manipulation of the Uniswap V4 pool spot price. The attacker exploited the SpiralHookV2.borrow() function, which valued collateral using poolManager.getSlot0() without implementing time-weighted average price (TWAP) or price-change limits. This oversight allowed the attacker to borrow against inflated collateral in the same block as the price manipulation.
The mechanism of the attack included bypassing the noSameBlockSwap guard, which is keyed by tx.origin. The attacker utilized six different externally owned accounts (EOAs) to execute this strategy, enabling them to take advantage of the inflated collateral value immediately after the price pump. This resulted in a loss of approximately 10.7 ETH for Spiral.
The incident occurred on the Ethereum chain, which means that the transactions and the associated addresses can be traced on the blockchain. However, specific addresses involved in the incident were not disclosed in the description. The manipulation of the Uniswap V4 pool highlights vulnerabilities in the collateral valuation process when proper safeguards are not in place.