Woofun AI reports that Syscoin has published a detailed post-mortem regarding a recent security incident, identifying a cross-layer interpretation mismatch between Syscoin Core and the NEVM relay as the root cause. The vulnerability was exploited through malicious UTXO-destroying transactions containing duplicate asset commitments targeting the same output index, leading to divergent interpretations: Core treated the output as a custom attacker-created asset, while the relay recognized it as a native SYS or SYSX asset.

In response, Syscoin confirmed that all illegally generated funds have been redirected to the official recovery address and subsequently burned into standard OP_RETURN tokens, rendering them unspendable under protocol rules. This action has successfully restored the token supply to its expected level.

However, the bridge remains suspended while the team conducts comprehensive reviews and implements necessary repairs.