A fresh blow to decentralized finance: trading platform Bunni was forced to halt operations after hackers siphoned off millions in stablecoins.

The breach came to light when security firm Blocksec traced suspicious outflows from Bunni's Ethereum contracts into a single wallet. By the time the dust settled, the address was sitting on more than $2.3 million -- roughly split between USDC and USDT.

Panic spread quickly through the community. One of Bunni's core contributors urged users to exit immediately, warning that funds left on the protocol could be at risk.

Hours later, the project confirmed the incident, announcing via X that all smart contract activity across networks had been paused while investigations are underway.

Bunni, a DEX designed around Uniswap V4 architecture, has promoted itself as a way to squeeze higher yields from liquidity pools using adaptive incentives.

That pitch now faces serious scrutiny as details of the exploit remain unclear. This is not the first time a DeFi protocol promising efficiency gains has instead become a target for attackers exploiting code weaknesses.

For now, the big question is whether Bunni can reassure its liquidity providers and restore confidence -- or whether the exploit marks the beginning of a longer crisis for the platform.