Harmony confirmed an exploit via an "empty blocks" vulnerability that allowed an attacker to mint ≈4 billion ONE tokens, or ≈26% of total supply. About ≈2.8 billion were routed to exchanges, and ONE fell 26–40% depending on venue and timeframe. Harmony has paused its cross-chain bridge and asked exchanges to freeze four linked wallets.
Matters because: Unauthorized inflation events erode token holder confidence and typically trigger sustained selling pressure until remediation is confirmed.