2026 has been particularly challenging for the crypto market, with hacking incidents becoming rampant.
In July, for example, over $59 million worth of crypto assets were exploited, raising total hacks to $1 billion in 2026 so far. Amid this surge, cross-bridge exploits have dominated, with the Midnight network as the latest victim.
Midnight suffers a cross-bridge exploit
Midnight Foundation and on-chain monitors reported a security incident affecting the Wanchain Cardano-to-BNB cross-chain bridge.
A 2-year-old contract that contained 515 million NIGHT was hacked, and all tokens were drained from the custody backing Wanchain-wrapped NIGHT on BNB.
Thereafter, funds were routed through fresh wallets and dumped on Cardano DEXs. The attacker sold 290 million NIGHT and is likely to sell the remaining tokens.
As a result, the wrapped NIGHT on BNB is now unbacked, even though its supply remains unchanged. However, the Midnight Foundation clarified that the Midnight network itself remained secure, with the incident isolated to cross-bridge operations.
NIGHT plummets amid extreme sell pressure
After the security incident, the NIGHT token crashed heavily. The altcoin dropped 32%, hitting a new all-time low of $0.015 before slightly rebounding to $0.019 as of writing. Over the same period, market cap dropped 27% to $324 million, while the trading volume skyrocketed 829% to $131 million.
Rising volume, alongside dipping price and market cap, signaled increased sell-side activity. In fact, exacerbated by attackers selling, the selling pressure intensified.
After the news, other holders panicked and quickly closed their positions.
On the Spot market, the Sell Volume rose to 624 million over the past 24 hours. Similar behavior was observed in the Futures market. As a result, traders exited the market, driving Futures Outflows to $67.4 million.
At the same time, inflows dropped to $62.3 million, with Netflow falling 1000% to -$5.1 million. The funds indicated that most traders turned bearish and closed positions to avoid further losses.
What’s next for NIGHT?
NIGHT is currently experiencing strong bearish pressure, as most market participants have significantly reduced exposure.
In that light, the altcoin’s Relative Strength Index (RSI) crashed into oversold territory, falling to 17 at press time. The RSI at such extreme lows confirmed heightened market pressure, with sellers in control.
Such market conditions warn of the likelihood of extended weakness. If the negative sentiment persists, Midnight will hold below $0.02 with $0.015 as support.
Final Summary
- Midnight suffered a cross-bridge exploit with 515 million NIGHT drained from the Wanchain Cardano-to-BNB bridge.
- NIGHT crashed 32%, hitting a new all-time low of $0.015 amid intense panic selling.
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