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1) Alright so here's what I gather happened with EMN:

was working on a new protocol. It was still in the testing phase, not ready to be released, in case e.g. it had bugs. He hadn't yet vetted it. It did, in fact, have an exploit

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SBF

@SBF_FTX

Sep 29, 2020

You either die a hero, or you live long enough to become the villain. Or you Twitter gets hacked, idk, one of those two.

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SBF

@SBF_FTX

2) People were digging around Andre's code, found what he was working on, and started to talk about it. To be clear Andre hadn't promoted it and wasn't intending it to be used yet--it (obviously) wasn't finished with testing! But people found it anyway.

2:04 AM · Sep 29, 2020Twitter Web App

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3) The people who found it started talking about it and spreading it (probably not maliciously -- probably just excited). Everyone wants to get in on the next big Andre project, so people started FOMOing into it when they got wind of it. So a bunch of people started buying.

SBF

@SBF_FTX

Sep 29, 2020

4) But, remember, it wasn't tested, and had an exploit (involving flash loans). So someone exploited it, taking all the funds ($16m I think?). The hacker then sent half to Andre (as an "I'm sorry" note?) and kept half for themselves. Andre wakes up and is like 'WTF happened'.

SBF

@SBF_FTX

Sep 29, 2020

5) News spreads, people are confused and hurt and angry and impressed and lots of other things at once. So, TL;DR: a) Andre didn't intend any of this to happen b) people dug around and found his incomplete projects c) people bought his incomplete projects d) flash loans