Liquid Network Resumes Blocks After $320M Bitcoin Exploit
Bitcoin (BTC)
Editor:
Eugene Serbin
bitcoinethereumnews.com reports that the Liquid Network has restarted block production following a major Bitcoin withdrawal event. This cautious step allows functionaries to generate and validate blocks using the latest software upgrade, though users cannot yet perform transactions or cash out L-BTC. The network entered this phase on September 10, 2026, at 10:00 UTC, separating block generation from transaction processing.
A partial liquidation process is underway while peg operations remain disabled until reserves are restored. The exploit involved attackers exploiting a vulnerability in the proof-verification protocol to issue unbacked L-BTC. These tokens were transferred through SideSwap’s authorized peg-out process, releasing Bitcoin from the federation wallet.
Approximately 3,996 BTC were withdrawn, reducing reserves from 4,205 BTC to 202 BTC. Liquid identified the attackers as white-hat hackers who lacked authority to issue the tokens. The network upgraded to Elements v23.3.4 to prevent proof reuse, with Blockstream confirming the patches. Functionaries have since returned 3,400 BTC, covering 85% of the withdrawn amount, while 598.5 BTC remains inaccessible.
How the market reacted
Whalio's own Binance spot order flow for BTC, measured when this story was written up on 11 September 2026. Not the outlet's figures.
BTC is trading at $76,568.72 with a 1-hour buy ratio of 47.3% and a 4-hour buy ratio of 50.2%. These short-term metrics show a balanced market, contrasting with the 24-hour buy ratio of 42.0%, which indicates that buying pressure has faded over the longer timeframe. The 1-hour volume delta is negative at -$2,038,628, while the 4-hour delta is positive at +$2,972,080, suggesting a shift from selling to buying in the immediate past. However, the 24-hour volume delta is -$191,321,920, and the CVD for the 24-hour close is -$36,986,368, showing net selling over the day. Only 9 of the last 24 hours saw net buying, highlighting a predominantly sell-side flow.
The latest daily buy ratio of 46.7% sits at the 18th percentile of the last 322 days, against a median of 49.2% - weaker buying than most days.
Was that an ordinary day?
The same Binance spot measurements for BTC, averaged over the days leading up to the story.
Over the preceding week, the buy ratio averaged 48.2%, with the latest day showing a 6.3-point drop from that average. Volume was 1.04 times the average, indicating slightly higher activity than usual. Only 1 of the past 7 days experienced net buying, and the price has dropped 5.8% over 8 days. The 8-day volume delta totals -$430,045,158, confirming a sustained period of net selling. This represents an unusual day for the coin, as it continues a trend of low buying days and negative price action.