Harmony's ONE token drops 26% after 4 billion new tokens are fraudulently minted.

Harmony's ONE token fell about 26% after an attacker exploited a vulnerability to create roughly 4 billion new tokens, increasing the supply by over 25%. The Harmony team confirmed the incident, is working with exchanges to freeze affected funds, and is preparing a software patch and possible blockchain rollback to reverse the damage. This incident follows previous security breaches, including a $100 million bridge hack in 2022 and a bug in 2023 that minted 146.3 million tokens improperly. The situation is ongoing, with further updates expected as Harmony investigates the vulnerability and finalizes recovery steps.