GMX Circular Dependency Vulnerability Threatens Ecosystem Stability

The core security weakness identified in the GMX ecosystem revolves around a cyclical dependency involving short positions, the global short average prices, AUM calculation, and GLP pricing, which creates a vulnerability to manipulation. The flawed price calculation lacks safeguards such as validation for reasonable bounds and slippage protection. Additionally, the processes for updating global short data and calculating AUM are directly influenced by potentially manipulatable data points, allowing single transactions to distort the ecosystem's financial metrics rapidly. The immediate updating of these global parameters without smoothing or delays exacerbates the risk, enabling malicious actors to manipulate prices and valuations through targeted position changes.