Uniswap User Lost $1.98M Swapping $2M ETH for $14K LIT Due to Low Liquidity Pool Backrunning

UNI-1.70%
ETH0.17%
LIT10.15%
AVAIL-0.54%
According to security platform GoPlus, a user recently swapped approximately 1,126 ETH (about $2 million) for 5,776 LIT tokens (about $14,000) on Uniswap, resulting in a loss of nearly $2 million. GoPlus analysis shows the incident was caused by backrunning in the same block, not a sandwich attack. The routing contract directed a large volume of WETH into a severely illiquid AVAIL/WETH pool, causing the user to purchase AVAIL at prices approximately 120 times above market rate. A backrunner then executed a reverse trade on the same pool with minimal real-price AVAIL, extracting about 1,072 WETH.
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