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Can a Centralized Exchange (CEX) Be Exploited Using a Flash Loan?

No, CEXs use internal order books, but their derivative products can be indirectly affected if they rely on a manipulated DeFi price feed.
Greeks.Live20.11.25

Can a Centralized Exchange (CEX) Be Exploited Using a Flash Loan?

A CEX cannot be directly exploited using a standard flash loan because CEXs operate on their own internal, centralized order books and are not governed by the same smart contract logic as DeFi protocols. Flash loans operate exclusively within the logic of a DeFi blockchain network.

However, a flash loan can be used to manipulate the price on a DEX, and if a CEX's derivative product or margin trading system relies on that manipulated DEX price feed, the CEX could be indirectly affected.

How Do Liquidity Pools on Decentralized Exchanges (DEXs) Differ from Traditional Order Books?
Can a TWAP Oracle Be Manipulated, and If So, What Are the Common Attack Vectors?
How Do Decentralized Exchanges (DEXs) Handle Bid-Offer Spreads Differently than Centralized Exchanges (CEXs)?
What Is the Role of an Order Book in Preventing or Facilitating Front-Running on a Centralized Exchange (CEX)?

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