Polymarket has confirmed that attackers compromised a third party vendor and used the access to inject malicious code into the platform’s frontend, leading to a phishing attack that drained an estimated $2.94 million from users.

Polymarket disclosed on X that it has removed the affected dependency, contained the incident, and will fully reimburse affected users. 

Blockchain analyst Specter estimated that the attack drained funds from at least 11 wallets after the malicious script appeared on the platform’s frontend.

Frontend compromise targets user wallets

Specter identified the attack as a phishing campaign rather than a protocol exploit. The analyst said the injected script enabled attackers to steal funds from connected wallets after users interacted with the compromised interface.

DefiLlama recorded the incident as the 89th reported crypto security breach of the second quarter, making it the highest quarterly total by incident count in the platform’s records.

DefiLlama also reported $74.9 million in losses across 29 crypto exploits during June. That total exceeded May’s $60.5 million but remained well below April’s $644 million.

The platform listed the $36 million Humanity Protocol exploit as June’s largest attack. Other major incidents included a $4.7 million exploit involving the Secret Network bridge, two separate $2.1 million exploits affecting Aztec, and a $1.7 million bridge exploit on Taiko.

DefiLlama reported that private key compromises accounted for 43% of exploit losses over the past 30 days. Fake proof exploits represented 10% of losses, while reverse MEV honeypots accounted for 8%.

Previous exploit traced to compromised private key

Polymarket disclosed a separate security incident about a month earlier after attackers exploited a six year old private key used for internal top up operations and stole about $600,000.

Security researchers, including ZachXBT, PeckShield, and Bubblemaps, initially flagged suspicious activity involving Polymarket’s UMA CTF Adapter contract on Polygon. Bubblemaps reported that attackers withdrew 5,000 POL every 30 seconds before estimating total losses at roughly $600,000.

Polymarket protocol contributor Shantikiran Chanal later attributed that incident to a compromised wallet used for internal operations rather than a vulnerability in the platform’s contracts or core infrastructure. 

Josh Stevens, the company’s vice president of engineering, stated at the time that user funds and smart contracts remained secure and that all permissions linked to the compromised key had been revoked.

Grant Cardone, CEO of Cardone Capital, used this week’s crypto slide to restate the case for his bitcoin-and-property model, saying the structure is designed to keep buying as prices fall.

“We work to improve the cash flow of the real estate and buy more bitcoin as it falls,” Cardone said in a post on X.

Cardone Capital, which has about $5.3 billion under management, uses the income generated from its real estate assets to buy bitcoin BTC$60,011.17 at regular intervals regardless of its price, smoothing out the expenditure in a process known as dollar-cost averaging. The largest cryptocurrency has lost 4.7% this week.

Cardone said the model was “inspired by treasury companies but with real assets and real cash flow,” and called his firm the largest real estate-bitcoin hybrid in the world, with no institutional investors shaping its strategy.

His comment draws a distinction with the corporate bitcoin treasury model popularized by Strategy (MSTR), in which companies raise money by issuing stock or debt to buy bitcoin.

That approach has come under pressure this week, with Strategy’s stock trading below the value of the bitcoin it holds and analysts at CryptoQuant arguing the firm has overextended itself.

Bitcoin briefly fell below $59,000 late Thursday as selling pressure spread across the crypto market. 

The move pushed BTC to an intraday low near $58,189 before a small rebound toward the $60,000 area.

According to crypto.news market data, Bitcoin remains under pressure after losing the $60,000 level during the latest selloff. The move kept traders focused on whether the $59,000-$60,000 area can turn back into support.

The selloff also came as major tokens weakened. Ether fell near $1,500, while altcoins saw larger losses as leveraged positions were forced out. The drop followed several days of weak ETF demand and poor risk appetite across crypto markets.

As previously reported, Bitcoin had already rebounded toward $62,000 after a $459m ETF exodus, but sellers kept control. That rebound has now faded, leaving BTC back near the same support zone that traders have watched through June.

Bitcoin ETF outflows and liquidations add pressure

U.S. spot Bitcoin ETFs lost $696m on Thursday, according to SoSoValue ETF data. The outflow extended the run to six straight trading days of net redemptions. U.S. spot Ether ETFs also lost $81.9m, marking their sixth straight day of outflows.

The Bitcoin ETF selling was broad. BlackRock’s IBIT, the largest fund, accounted for about $63m of the outflows. Fidelity’s FBTC lost $3.5m, while Grayscale’s funds saw about $23m leave. No fund posted strong inflows during the session.

Leveraged traders also faced a sharp wipeout. According to CoinGlass data, more than $1b in crypto positions were liquidated over 24 hours. Long traders took most of the damage, with about $842m in long positions closed.

Bitcoin led the liquidation wave with about $489m in forced closures. Ether followed with about $295m. The largest single liquidation was a $38.05m BTC-USD position on Hyperliquid, showing how quickly large leveraged bets were removed.

Bitcoin traders watch $59K-$60K range

Crypto trader Daan Crypto Trades said Bitcoin had taken much of the liquidity around the $60,000 region. In a post on X, he said the biggest liquidity cluster now sits near $67,000, around the June high.

He added that the $59,000-$60,000 area remains key. If Bitcoin forms a range and buyers defend that area, the market could stabilize. If BTC slowly returns to the same support again, he warned that it may prepare for another higher-timeframe leg lower.

Another market watcher, BATMAN, said Bitcoin is close to printing a weekly death cross. He argued that the last death cross did not mark the exact bottom. Instead, it led to a long consolidation phase before the final cycle low.

EGRAG CRYPTO also pointed to a bearish cross between the 13-week and 33-week moving averages. He said a two-week close above $74,000 would weaken the bearish setup. Until then, he said the cycle-bottom window remains open, with downside zones around $47,000, $43,000 and $37,000.

Technical indicators remain fragile

Bitcoin’s short-term indicators show weak momentum, even after the small rebound. The MACD shows a mild bullish crossover, with the histogram slightly positive near 16.31. The MACD line sits around -2,269.45, just above the signal line near -2,285.76.

That setup means downside momentum has slowed. Still, both lines remain far below the zero line. This keeps the signal weak and shows that the recovery has not yet shifted the broader trend.

The RSI stands near 32.98, below its moving average around 37.77. This keeps Bitcoin close to oversold territory. Buyers have not regained control because RSI remains well below the neutral 50 mark.

Volume is near 12K, with heavier selling volume during the June decline. The latest candle shows a small rebound, but the market still lacks strong confirmation. Bitcoin needs to reclaim $62,800-$65,000 to show that buyers are taking back short-term control.

Short-term holders show stress

CryptoQuant analyst Amr Taha said Bitcoin’s short-term holder market cap fell to $237.7b on June 26. That was its lowest level since Oct. 2, 2024, when the figure was near $239.7b. The drop shows that many recent buyers are now holding unrealized losses.

He also noted that the Crypto Fear & Greed Index fell to 12 on June 25, placing the market in Extreme Fear as Bitcoin traded near $59,700. The reading is not the lowest of the year, but it comes at a lower BTC price, showing deeper stress among recent buyers.

Taha also said short-term holders sent about 50,000 BTC to exchanges at a loss over 24 hours. Binance received about 9,500 BTC from that group, its highest reading since early June. Exchange transfers do not prove that all coins were sold, but they show that more BTC has moved to venues where it can be traded.

As crypto.news reported, Bitcoin triggered a large liquidation wave after falling below $60,000. Previously, crypto.news explored how the $60,000 support zone came under pressure after a bearish chart breakdown.

Macro news may help limit panic, but it has not yet changed the chart. An interim U.S.-Iran peace accord gives UN nuclear inspectors access to Iran, although details remain disputed. 

For Bitcoin, the near-term test is simpler: hold $59,000-$60,000, or risk another move lower.

Key Takeaways

• AAPL shares declined approximately 6% following announcement of widespread hardware price increases — the first major pricing adjustment in years
• Hardware price hikes span from $100 to $300 across most models, with Mac Studio jumping $1,300
• Global memory chip scarcity, fueled by AI infrastructure demand, has driven DRAM costs up roughly 90% in Q1 2026 and an additional 60% in Q2
• Memory chipmaker Micron reported unprecedented 84.9% gross margins on the same day, highlighting the disparity between suppliers and buyers
• iPhone pricing remains unchanged for now, though analysts project the memory supply crisis could add approximately $200 in component expenses per unit

Apple announced sweeping price increases across its hardware portfolio on Thursday, triggering a sharp investor selloff. AAPL shares plummeted roughly 6%, declining $18.78 to close near $274.30, wiping out almost $200 billion in market capitalization during a single trading session.

Apple Inc., AAPL

The pricing adjustments affect Macs, iPads, HomePods, Apple TV devices, and the Vision Pro mixed-reality headset. The M5 MacBook Pro base model now commands $1,999, representing a $300 premium. Mac Studio experienced the steepest adjustment with a $1,300 price escalation. Most mainstream products saw increases between $100 and $300.

Apple CEO Tim Cook offered a stark assessment when speaking with The Wall Street Journal. “This is a hundred-year flood,” Cook stated. “I’ve never seen anything like it in any area in over 40 years.”

The underlying driver is a worldwide memory semiconductor shortage. Explosive AI data center construction has absorbed enormous quantities of DRAM and NAND flash memory, creating severe supply constraints for consumer electronics manufacturers.

DRAM contract pricing surged approximately 90% during Q1 2026, followed by another 60% escalation in Q2, per TrendForce data. NAND flash memory has tracked a comparable trajectory. Memory and storage component expenses now stand at roughly quadruple their levels from three quarters prior.

Cook acknowledged Apple’s efforts to shield consumers from the impact. “We’ve been trying to shield our customers from the increases, but the situation has become unsustainable,” he explained.

Micron’s Record Performance Highlights Industry Dynamics

While Apple shares were declining, Micron experienced a dramatic rally. The memory chip manufacturer reported all-time high revenue and an unprecedented 84.9% gross margin, exceeding analyst forecasts. Micron’s market capitalization expanded by more than $100 billion on Thursday.

This stark divergence illustrates the current market reality. The memory supply crisis has transferred pricing leverage decisively to chip manufacturers. For companies purchasing these components — including Apple — near-term relief appears unlikely. Micron projects its gross margin will expand further to approximately 86% in the coming quarter.

Apple’s Q2 2026 financial results, for the period ending March 28, demonstrated revenue growth of 17% year-over-year reaching $111.2 billion, with EPS advancing 22%. Gross margin reached 49.3%. However, these figures largely preceded the most severe phase of the memory price escalation.

iPhone Pricing Remains Under Scrutiny

Thursday’s pricing revisions notably excluded the iPhone, Apple Watch, and AirPods product lines. This reprieve may prove temporary. Next-generation iPhone models are anticipated this fall, and research firm Counterpoint projects the memory supply crisis could increase component costs by approximately $200 per device. Higher-capacity storage configurations face the most significant impact.

The iPhone generates approximately half of Apple’s consolidated revenue, making any pricing strategy for this product line substantially more consequential than Mac or iPad adjustments.

Apple currently trades at roughly 33 times earnings at the $275 price level. This valuation premium reflects investor confidence in the company’s margin structure and services revenue expansion — the services division achieved record revenue of approximately $31 billion in Q2. Margin compression diminishes the company’s margin for error.

The stock has retreated into its previous consolidation range, with the $275–$280 area emerging as a critical technical support zone for investors to monitor.

Japanese financial services giant SBI Holdings said it agreed to buy cryptocurrency exchange Bitbank for around $289 million.

The Tokyo-based bank first floated the idea at the start of last month, framing it as part of a broader strategy to expand its crypto business ahead of potential regulatory developments in Japan. It bought crypto exchange Bitpoint in 2022.

Japan is in the process of bringing cryptocurrencies under the umbrella of financial products as authorized by the Financial Instruments and Exchange Act, which applies to stocks and other securities. This could take effect from early next fiscal year.

Bitbank is among Japan’s top 10 largest crypto exchanges by trading activity, according to CoinGecko, processing 24-hour volume of just under $50 million. Competitors such as Toobit, CoinW, Kraken and Bitmart all process in excess of $1 billion.

SBI said the acquisition, which is subject to regulatory approval, is set to close in October in a statement on Thursday.

A third-party vendor compromise discovered Thursday allowed attackers to inject a malicious script into Polymarket’s frontend, affecting multiple users.

Blockchain analyst Specter said the malicious script appeared to facilitate a phishing attack that drained an estimated $2.94 million from at least 11 Polymarket user wallets.

Polymarket said on X that the compromise has been contained and that the affected dependency has been removed. It added that users would be fully refunded.

Cointelegraph has approached Polymarket for comment but did not receive a response before publication.

The attack was the 89th reported crypto security breach of the second quarter, according to DefiLlama data, extending the most-hacked quarter on record by incident count.

Source: Specter

Crypto exploit losses reach $74.9M across 29 June incidents

Crypto exploit losses climbed to $74.9 million across 29 reported incidents in June, surpassing May’s $60.5 million total but remaining far below April’s $644 million, according to DefiLlama data.

Total value hacked by monthly sum, 1-year chart. Source: DefiLlama.

The largest June incidents included the $36 million Humanity Protocol exploit, the $4.7 million Secret Network bridge exploit, two separate Aztec exploits worth $2.1 million each and a $1.7 million bridge exploit on Taiko.

Related: About 60% of World Cup bettors on Polymarket are first-time crypto users

Over the past 30 days, private key compromises accounted for 43% of reported exploit losses, making them the leading attack vector, according to DefiLlama. Fake proof exploits accounted for 10%, followed by reverse MEV honeypots at 8%, which present deceptive trading opportunities to lure and manipulate automated trading bots.

About a month before Polymarket’s latest attack, the prediction market disclosed a separate $600,000 exploit that was traced to a six-year-old private key used for internal top-up operations. Josh Stevens, Polymarket’s vice president of engineering, said the platform’s contracts and user funds remained safe and that all permissions tied to the key had since been revoked.

Total value hacked by technique over the past 30 days. Source: DefiLlama

Polymarket currently holds over $450 million in total value locked, up 301% from $112 million a year ago, according to DefiLlama.

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