The Base Ecosystem Meme Coin NORMIE experienced a dramatic price drop of 87.6% on May 26, according to CoinGecko market data. This sudden and significant decline was the result of a flash loan attack, which exploited the remaining 0.63% of the token supply in the contract.

The attacker, using a flash loan, repeatedly bought and sold the tokens after disabling the tax, triggering the contract to automatically dump tokens exceeding 1% when the tax reached 1%. This attack was completed in a single transaction, resulting in a large number of tokens being dumped onto the market. The attacker then bought a large amount of tokens at a price of zero within the same block, reaping substantial profits from the attack.

Despite the devastating impact on the token's price, the project side also gained considerable benefits from the tax dump. With sufficient funds, they were able to buy back tokens, potentially stabilizing the market and mitigating the effects of the attack.

The flash loan attack on NORMIE highlights the vulnerabilities of certain smart contracts and the importance of robust security measures to prevent such attacks. It also underscores the need for projects to have contingency plans in place to mitigate the effects of such attacks and protect their investors.

In conclusion, the flash loan attack on NORMIE serves as a reminder of the importance of security and the potential risks associated with investing in cryptocurrencies. It is essential for projects to prioritize the security of their smart contracts and for investors to be aware of the potential risks involved in investing in digital assets.