FLOW Token Plummets 42% as Security Incident Sparks Exchange Suspensions

TLDR

• The FLOW token fell 42.61% after reports of a potential security incident on the Flow network.
• Exchanges, including Upbit and Bithumb, suspended FLOW deposits and withdrawals amid volatility.
• Transaction ingestion failures and possible vulnerabilities are being investigated by the Flow Foundation.
• Price shows short-term consolidation around $0.10, but moving averages remain above, acting as resistance.

The FLOW token crashed by over 42% after a potential security incident on the Flow network disrupted transactions. Exchanges, including Upbit and Bithumb, halted deposits and withdrawals. 

The Flow Foundation is investigating technical failures, potential vulnerabilities, and infrastructure issues. Price now consolidates around $0.10, while moving averages remain overhead, limiting immediate recovery potential.

FLOW Token Faces Sharp Price Decline and Exchange Suspensions

According to Binance market data, the FLOW token price plunged from $0.17 to $0.079 within 24 hours, reflecting panic selling. Current trading shows the token stabilizing around $0.10.

The Flow Foundation announced an ongoing investigation into a potential network security incident. The team is analyzing transaction ingestion failures and possible technical disruptions affecting blockchain operations.

Major South Korean exchanges, including Upbit and Bithumb, suspended FLOW deposits and withdrawals. DAXA issued a formal trading risk warning to inform investors of heightened volatility and operational risks.

The FLOW/USDT chart indicates a regime shift from stable sideways movement to aggressive downward pressure. Price broke below key moving averages, with long red candles dominating trading sessions.

Short-term relief buying has appeared after the price bottomed near $0.079, but overlapping candles suggest consolidation rather than a confirmed rebound. The market remains cautious as moving averages act as resistance.

Traders are observing a stabilization zone around $0.10. A confirmed recovery would require higher lows and reclaiming key moving averages with volume support.

Potential Causes and Network Investigation

The Flow Foundation is examining several technical and operational causes for the incident. Transaction ingestion failures have been reported, preventing new data from being processed correctly.

Resource bottlenecks may have caused nodes to process transactions inefficiently. Protocol mismatches or incorrect flow formats could have stalled the ingestion of network data.

Security vulnerabilities are also under investigation, including potential remote code execution or zero-day exploits affecting core execution nodes. A network upgrade may address these risks.

External factors could have contributed to network instability. AWS outages on December 25, 2025, may have disrupted server networks relied upon by Flow nodes.

Increased cyber activity during the holiday season is being examined, as attackers often target understaffed monitoring teams. Exchange maintenance issues in early December could also play a role.

The Flow Foundation is collaborating with network partners to implement mitigation measures. Verified findings and further updates are expected as the investigation progresses.

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