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This bad debt stems from a bailout that Mango Markets and rival Solana lending platform Solend put together for a large Solana whale that had $207 million in debt spread across multiple lending platforms.
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The bailout was put together over concern that should the SOL token drop by another 20%, the whale’s positions would be liquidated, which would cause contagion and adversely impact the Solana ecosystem.
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As a result of this ongoing issue with Mango Markets, the Wormhole token bridge announced it is pausing transfers from Solana.
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Part of the exploiter’s ultimatum seeks a promise from Mango it will not pursue a criminal investigation or freeze his funds.
UPDATE (Oct. 12, 2022 11:13 UTC): Refers to rogue trader as exploiter instead of hacker.
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