Price manipulation exploits in the crypto space target decentralized exchanges to profit unfairly from protocols relying on specific asset prices.
Attackers manipulate prices using flash loans or transactions, tricking platforms like DeFi to gain substantial profits before prices normalize.
Real-world examples of platforms affected by these exploits include bZx Protocol, Harvest Finance, Alpha Homora, Beanstalk Farms, and more, leading to millions in losses.
To avoid price manipulation exploits, users and projects should use reliable oracles, avoid low liquidity tokens, watch for flash loans, employ multi-oracles, community audits, and bug bounties.