Flaw in Backbone Labs' bOSMO contract caused 50% excess OSMO payouts, draining reserves.

A flaw in Backbone Labs' bOSMO contract caused redemptions to pay about 50% more Osmosis (OSMO) tokens than intended since April 2026, reducing the assets backing remaining holders. To limit damage, the Osmosis community pool redeemed 776,000 bOSMO on October 10, withdrawing about 1.3 million OSMO and nearly exhausting the contract's reserves. The community plans to distribute 40,508 OSMO to affected accounts after unstaking on October 24 and warned users not to buy bOSMO or add liquidity to related pools. This issue affects the value and security of bOSMO holders' assets.

Osmosis (OSMO) has a market cap of Rp598.81 million and a 24-hour trading volume of Rp357.01 million on Pluang as of Oct 16, 2026, 18:32 WIB. The token's price is Rp792, up 4.56% in the last day, with 75% of the total supply circulating. Despite the recent bOSMO contract issue, Pluang users show a 59% sell and 41% buy order activity, holding OSMO for an average of 25 days.