According to the Osmosis community forum, a contract vulnerability has been discovered in the liquid staking token bOSMO issued by Backbone Labs. Since at least April 2026, each redemption has been paying out approximately 1.676 OSMO, about 50% higher than the normal exchange rate of 1.117 OSMO, diluting the asset backing for remaining holders. To prevent the vulnerability from further impacting other holders, the community pool redeemed 776,000 bOSMO on October 10, extracting approximately 1.3 million OSMO, nearly depleting the contract reserves. The community plans to compensate around 40,508 OSMO to 1,037 accounts after unbonding on October 24 and has reminded users to avoid purchasing bOSMO or providing liquidity to related pools. https://(wublock123.com)/news/the-osmosis-community-has-disclosed-a-loophole-in-the-bosmo-contract-resulting-in-a-redemption-excess-of-50-and-plans-to-compensate-approximately-40000-osmos-70186