The rollout of pre-deposits for MegaETH's USDm stablecoin on November 25, 2025, was marred by a series of technical failures and operational errors, leading to widespread confusion and over $500 million in locked funds. The event began at 9:00 AM ET with a $250 million cap on USDC bridges from Ethereum for KYC'd Sonar wallet holders, offering a 2.5% $MEGA airdrop multiplier to early depositors.
However, the project's third-party bridge provider experienced an outage almost immediately, leaving the site inaccessible for nearly an hour. Once service resumed at 10:00 AM, the entire $250 million cap was filled in just 156 seconds, driven by high demand from whales and bots.
In response, the MegaETH team announced plans to raise the cap to $1 billion to accommodate more users, but a critical multisig error exacerbated the situation. While preparing the transaction on their Gnosis Safe multisig, the team accidentally set a 4-of-4 signature threshold instead of the intended 3-of-4, making the transaction executable by anyone. At 10:26 AM, 34 minutes before the scheduled reopening, a user executed the transaction prematurely, triggering another surge in deposits that quickly exceeded $400 million.
The team attempted damage control by queuing cap adjustments—first to $400 million, then to $500 million—but deposits continued to flood in. By late morning, MegaETH abandoned the $1 billion expansion plan, citing unexpected issues and enabling a withdrawal option for users who no longer wished to participate. Despite the chaos, no exploits occurred, and the contracts had passed audits by Zellic and Slowmist.
Community sentiment split, with critics labeling the event a clown show while defenders highlighted the raw demand that locked half a billion dollars in a bear market. The $MEGA token pre-market price hovered around $2-$3, with mainnet launch still scheduled for December.
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