Float Protocol Suffers $28,000 Loss Due to Uniswap V3 Spot Price Manipulation

Float Protocol suffered a significant loss after an attacker manipulated the Uniswap V3 spot price in its Hypervisor contracts, resulting in a loss of approximately $28,000 (10.71 ETH).

The root cause of the incident was identified as direct reliance on Uniswap V3's slot0 data without time-weighted average price (TWAP) validation or slippage protection.

An attacker used flash loans to execute large swaps on the Uniswap V3 pool, distorting the slot0 value and allowing repeated deposits and withdrawals at manipulated LP share valuations.