How Does a High Slippage Tolerance Enable “Slippage Exploitation” Attacks?

A high slippage tolerance gives a front-runner a large window to exploit. If a user sets a 10% tolerance, a front-runner can execute a sandwich attack, knowing the victim's trade will execute even if the price is moved up to 10% against them.

This wide tolerance allows the attacker to execute their preemptive trade, let the victim's trade move the price significantly, and then execute their profitable sell, all while the victim's trade is guaranteed to succeed at a highly unfavorable price.