Raydium has said it will compensate users who lost funds in the exploit.
Raydium users lose $1.34 million after legacy smart contract exploited
An attacker exploited a legacy smart contract that had been used by the Raydium Solana DEX before it was deprecated in 2021. Though the contract was unused, there were still funds in the liquidity pools affected by the vulnerable contract. Using fake LP tokens, the exploiter was able to trick an old smart contract with insufficient validation into allowing them to withdraw assets.