ONE Plunges 40% Following Harmony Exploit: Short Positions Gain Momentum Ahead of CPI

A sharp increase in ONE supply following an exploit on Harmony sent the token tumbling 40%, while the strengthening of short positions in the derivatives market ahead of US CPI data highlighted the vulnerability of altcoins.

Harmony confirmed that its network, which provides infrastructure for DeFi applications, was exploited at the start of the Asian session. The attacker minted 4 billion ONE via empty blocks, representing approximately 26% of the circulating supply. As roughly 2.8 billion ONE were transferred to exchanges, the ONE price dropped by as much as 40%, hitting record lows.

Focus is now on the July US CPI data to be released at 12:30 UTC. The market expects the data to be a directional driver for risk assets. Bitcoin has been trading around the $63,900 level, up 0.23% since midnight, while the Fear and Greed Index remained at 38.

Short positions rise ahead of CPI

While no direct causality can be established between the exploit and CPI, derivatives data pointed to cautious positioning. While total futures trading volume and open interest remained flat, the share of shorts in taker trades—which pull liquidity via market orders—rose to 51.36%, reversing the long dominance seen at the start of the week.

A 6% increase in open interest while the price of AVAX fell indicated that the weakness was supported by the futures market. CVD, which measures net market order flow, reached its most negative level among major assets, signaling that short selling has become more aggressive. DOGE open interest climbed to 17.2 billion tokens, hitting its highest level since October; with the price remaining flat around 7 cents, the risk of a sharp, directionless move remained high.

$70,000 level watched in Bitcoin options

BVIV, which measures Bitcoin’s 30-day implied volatility, eased from 38.66% on Monday to 37.5%. Low short-term option volatility suggested that a major post-CPI shift is being priced in conservatively, though the risk associated with the data may be underestimated.

The $70,000 call option reflecting bullish expectations was the most traded contract on Deribit for the second consecutive day. Demand also increased for BTC strangle trades—a strategy involving buying both puts and calls simultaneously—indicating that some investors are pricing in sharp volatility rather than a specific direction.