A flaw in a Uniswap v4 hook allowed an attacker to extract ~$27K from ZooFinance (VTSwapHook contract).
EXPLAINATION:
The hook used a nonlinear price curve (ln) but calculated trades using a simple midpoint average, creating a small but consistent pricing advantage.
By chaining 20+ alternating swaps in a single transaction, the attacker repeatedly captured this edge.
The issue was worsened by incorrect fee accounting, which inflated virtual reserves and kept prices artificially favorable, allowing continuous profit until liquidity was drained.
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