Initia's native token INIT posted a dramatic 71.51% 24-hour gain to around $0.2161, but the rally is colliding with a serious infrastructure crisis after the layer-1 network was halted. Trading volume reached approximately $99.42 million, weekly gains hit 63.93%, and open interest jumped 103.63% to $49.32 million as short liquidations helped fuel upside. Despite the price bounce, INIT still faces resistance at its 20-day EMA of $0.2156, while persistent spot and futures outflows add caution.
Late on November 9, Initia said it was investigating an issue affecting rollup infrastructure and had paused rollups temporarily. By November 10, the team halted L1 operations at 06:18 UTC after preliminary investigations identified unauthorized transfers from escrow accounts holding assets bridged to several rollups. The attacker used compromised rollup infrastructure keys to fabricate Inter-Blockchain Communication transfers, moving roughly $605,000 in USDC through Noble and about $10,000 in other tokens before validators paused the network. Initia said most of the remaining assets moved out of escrow accounts are still halted on the L1.
The incident is the second major exploit in less than a month. In late October, an attacker abused a MoveVM script caching vulnerability to create unbacked WETH, iUSD, and USDC balances and bridged about $2.7 million through LayerZero and Noble. By October 24, the attacker had converted the stolen assets into roughly 1,135 ETH. The Initia Foundation later approved funding to restore 1:1 backing of affected assets, covering up to 1.08 million USDC, 105 ETH, and 1.4 million AUSD0. The network had only resumed operations on November 2 after an independently audited MoveVM patch and isolation of the attacker's remaining forged balances.
Despite the L1 halt, INIT remained sharply higher, up almost 60% over 24 hours and more than 71% over seven days at the time of writing. It also gained about 45% over two weeks and over 88% in 30 days, though it remains roughly 84% below its May 2025 all-time high of $1.42.
