The decentralized exchange (DEX) platform, Bunni, has permanently ceased operations following a significant hack in September 2025 that resulted in the loss of an estimated $8.4 million. The closure is attributed to the insurmountable costs associated with a secure relaunch and the complete loss of operational capital. Bunni’s shutdown serves as a stark reminder of vulnerabilities within the DeFi sector, which witnessed over $3.1 billion in hacks by October 2025. This event significantly impacted liquidity providers and investors, who are grappling with increased security concerns and reduced trust in decentralized platforms. The sudden closure followed a crippling exploit that exposed the platform’s vulnerabilities. Bunni’s team acknowledged the challenges of potential recovery efforts, ultimately leading to the decision to permanently shut down operations. The closure left users without access to their funds and significantly impacted liquidity pools on the platform. While attempts were made to recover assets, these efforts were hampered by a complete loss of operational capital and theft via Tornado Cash. The incident underscores recurring issues within the DeFi ecosystem where security breaches can result in financial losses that are often impossible to overcome. This event further emphasizes the need for robust security measures and greater transparency within decentralized finance, as community-driven solutions will play a crucial role in mitigating these vulnerabilities. The Bunni team has opted to license all v2 smart contracts from BUSL to MIT, fostering open-source development and innovation under this widely accepted license model. These moves offer hope for improved cybersecurity while ensuring the availability of code that can be utilized by developers across the DeFi landscape.