Cypher, a decentralized exchange based on the Solana blockchain, suffered a loss of $400,000 in cryptocurrency on Monday due to a security incident or exploit. The exchange's contracts have been frozen as the team tries to negotiate with the hackers for the return of the funds. Cypher's popularity has been attributed to its loyalty program, which rewards users with points that many believe will lead to an airdrop. The incident occurred during Cypher's biannual hacker house event, which it hosts with fellow Solana trading protocol marginfi, although the latter was not affected.