**SEI Chain Vulnerability Exposed: Flash Loan Alert After Synnax Contract Incident**

A critical security incident on the SEI blockchain has come to light through BlockSec Phalcon's analysis, demonstrating how flash loans can be weaponized against vulnerable smart contracts. The Synnax protocol fell victim to an attack that extracted approximately $240,000 in stolen assets—specifically 1.96 million WSEI tokens that were never returned to the protocol.

**The Chain of Events: How Misoperation Enabled the Attack**

What makes this incident particularly instructive is the attack vector. Three blocks before the actual exploit, address 0x9748…a714 executed what appeared to be a routine operation—yet this transaction inadvertently became the linchpin. The address mistakenly directed funds directly into the Synnax contract, creating an unexpected liquidity source that the attacker later weaponized. This unintentional fund transfer essentially supplied the ammunition for the subsequent attack.

**Technical Breakdown: TX1 and TX2 Execution Path**

The attack itself unfolded through a specific transaction sequence involving TX1 and TX2, which showcased a calculated exploitation pattern. By leveraging flash loan mechanics alongside the misplaced funds from the prior transaction, the attacker was able to manipulate the contract's logic and drain assets without triggering standard safeguards.

**The Broader Risk Landscape**

This incident underscores a critical vulnerability class within DeFi: chain-level operational errors can cascade into protocol-level exploits. Even a single mistransaction—when combined with flash loan primitives—can create a domino effect leading to significant fund loss. For developers and protocol teams, the message is clear: comprehensive validation of fund sources and transaction origins remains essential, and monitoring for abnormal contract balance changes should be a standard practice.