When a Hacker Targets Meme Coins: How One Trader Turned the Tables and Netted $1M

A recent on-chain incident has exposed a sophisticated manipulation attempt that ultimately backfired spectacularly. Security analyst Ai Yi uncovered evidence of a compromised exchange account where the attacker faced a critical constraint—withdrawal restrictions triggered by the platform’s risk management system. Unable to directly cash out, the perpetrator pivoted to a pump-and-dump scheme as an alternative escape route.

The strategy was calculated: identify an obscure, low-liquidity meme token with minimal market attention. BROCCOLI714, a relatively unknown asset, became the unsuspecting target. The hacker began executing coordinated buy orders to artificially inflate the token’s spot price—classic wash trading designed to move funds through the noise of legitimate market activity.

But the plan unraveled when Formula News founder Vida detected the abnormal price movement through real-time monitoring systems. Rather than panicking, Vida recognized the pattern immediately—the aggressive buying pressure combined with the token’s illiquidity screamed market manipulation. The trader seized the opportunity, taking a long position and executing a textbook exit strategy once the perpetrator’s buying pressure exhausted itself after triggering circuit breaker mechanisms.

The result? Vida netted approximately 1 million dollars in profit by essentially frontrunning the hacker’s own operation. Meanwhile, the attacker’s subsequent attempt to execute a similar maneuver with SOL collapsed before execution, ultimately forcing an abandonment of the scheme. Exchange security protocols are suspected to have intervened, effectively blocking further suspicious activity on the compromised account.

This episode underscores a troubling reality: even as security measures tighten, hackers continue adapting their tactics. Yet it also demonstrates that market participants who remain vigilant—particularly those skilled at pattern recognition—can weaponize market manipulation against its perpetrators. The irony? A hacker’s attempt at a sophisticated escape ultimately funded someone else’s substantial windfall.