PacaSwap DEX

An attacker exploited an arithmetic flaw in Tessellation’s metagraph fee-transaction accounting. A specially constructed batch of fee transactions caused an intermediate subtraction to underflow and wrap into a large positive balance, creating SWAP that was not backed by deposits.

Because validation focused on the resulting batch state rather than validating each balance-changing operation individually, the final balances remained apparently valid and reconciled. 1M real DAG contributed by LPs.

The flaw was specific to Tessellation’s metagraph fee-transaction path; Constellation’s Hypergraph and DAG supply were unaffected.