Cardano experienced a chain fork due to an incorrect order format, but no user funds were lost.

Odaily Planet Daily reports that a blockchain split into two chains on Friday due to a software vulnerability triggered by a malformed proxy transaction. The transaction passed verification on the new version of the node, but was rejected by the old version of the software, leading to the network fork.

In its incident report, Cardano's ecosystem governance organization, Intersect, stated that the "toxic transaction" exploited a vulnerability in the underlying software library, splitting the network into a "poisoned chain" containing the transaction and a "healthy chain" not containing it. Co-founder Charles Hoskinson initially claimed it was a "premeditated attack," but subsequently, an X user, Homer J., publicly admitted responsibility, stating that he was negligent in attempting to reproduce the "toxic transaction" and relied on AI-generated instructions. The user stated that he had no malicious intent and did not gain any financial benefit from it. Intersect confirmed that no users suffered financial losses, and most retail wallets were unaffected. The price of the ADA token fell by more than 6% as a result of the incident. (Decrypt)