Cardano Wallet Suffers $6 Million Loss in Single ADA Swap

A dormant Cardano wallet, holding a significant amount of ADA (over 14.4 million), unexpectedly made a large swap that resulted in a substantial loss exceeding $6 million. This incident highlights the importance of understanding liquidity pools and their associated risks when executing trades. The wallet owner opted to utilize a low-liquidity pool, leading to a sharp price discrepancy between the initial trade and its settlement price. analysts suggest that this event underscores the vulnerability of such setups in markets with limited counterparties.