The Cardano blockchain recently hit a major snag that had the crypto community buzzing. On November 22, 2025, a stake pool operator triggered a chain split, disrupting the network's smooth operations. This event affected everything from block rewards to DeFi applications and everyday transactions. If you're into blockchain tech or hold some ADA, here's a breakdown of what went down, explained in simple terms.

How the Split Happened

It all started with a single malformed delegation transaction around 08:00 UTC. Delegation in Cardano means assigning your ADA staking rights to a pool without transferring the coins—it's how the proof-of-stake system works. This faulty transaction passed validation on newer node versions but got rejected by older ones, causing the chain to fork into two competing versions.

Nodes are the computers running the blockchain software, and a fork happens when the network disagrees on the valid chain. Block production kept going on both sides, but explorers—tools that let you view blockchain data—froze up due to conflicting information. Users experienced delays, unconfirmed transactions, or deals landing on the wrong side of the split.

Major exchanges like Coinbase halted ADA deposits and withdrawals to play it safe, with some pauses lasting up to 14 hours. This was to prevent losses until one chain emerged as the dominant one. According to reports from CoinDesk, the issue stemmed from a known bug that was exploited using an AI-generated script.

The Confession and Controversy

A few hours later, an X user going by "Homer J." came forward and claimed responsibility. He explained that he was trying to replicate a bad transaction based on instructions from an AI tool, aimed at blocking traffic on his Linux server. He admitted to skipping testnet trials—Cardano's sandbox environment for experiments—and apologized, insisting it wasn't for market manipulation or short-selling.

But Cardano founder Charles Hoskinson wasn't buying the accident story. He labeled it a deliberate attack targeting his personal stake pool and Input Output Global (IOG), the company behind much of Cardano's development. Hoskinson warned that the fallout could linger for weeks and tarnish the project's reputation. He even mentioned that authorities, including the FBI, were involved, a claim later backed by Intersect, Cardano's governance body.

This sparked more drama when a Plutus developer—Plutus is Cardano's smart contract language—at IOG resigned. The developer argued that pursuing legal action over honest mistakes could stifle innovation and make developers wary of experimenting.

Impacts on DeFi, Exchanges, and the Market

The split created two parallel chains, leading to confusion in smart contract executions. DeFi tools, which rely on a single, consistent blockchain state, struggled the most. Transactions stretched out, and data mismatches plagued explorers.

Fortunately, emergency patches were deployed within three hours, allowing the network to converge back to a single chain. No user funds were lost, but the incident highlighted vulnerabilities in even robust systems like Cardano's.

On the price front, ADA dipped as much as 16% during the chaos before bouncing back to around $0.41. While Cardano isn't primarily known for meme tokens, its ecosystem hosts several, like SNEK or HOSKY, which could have felt the ripple effects through DeFi disruptions. For meme token enthusiasts, this serves as a reminder that underlying blockchain stability is crucial, even if your focus is on fun, community-driven assets.

Lessons Learned and Moving Forward

Cardano is back to stable operations, but the event has raised questions about network resilience, the role of AI in exploits, and how communities handle crises. Hoskinson called for unity in the face of such challenges, emphasizing quick recovery as a strength.

If you're building or investing in blockchain projects, incidents like this underscore the importance of thorough testing and rapid response teams. Stay tuned to BSCNews on X for more updates, and check out resources like CryptoBriefing for deeper dives.

In the wild world of crypto, events like the Cardano split keep things exciting—and remind us why decentralization and security matter. What do you think—accident or attack? Drop your thoughts in the comments!