Backbone Labs' bOSMO token contract vulnerability overpaid OSMO redemptions; Osmosis to compensate 1,037 accounts

Per the Osmosis community forum, Backbone Labs' liquid staking token bOSMO has a contract vulnerability: since at least April 2026, each redemption paid about 1.676 OSMO versus the normal 1.117 rate, diluting remaining holders' backing. The community pool redeemed 776,000 OSMO on Oct 10 to limit further impact. Osmosis will compensate 1,037 accounts with roughly 40,500 OSMO after an unlock expected Oct 24, and recommends not buying bOSMO.

Detected & updated continuously · Source: Nebula