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What Is a Reentrancy Attack in the Context of Smart Contract Vulnerabilities?

A reentrancy attack occurs when an external malicious contract repeatedly calls back into the vulnerable contract before the first transaction's state update is complete. This allows the attacker to drain funds multiple times.

The famous DAO hack was primarily due to a reentrancy vulnerability.

Why Are Fallback Functions Critical in a Reentrancy Scenario?
How Does a Reentrancy Attack Relate to the DAO Hack?
How Did the DAO Hack in 2016 Utilize a Reentrancy Attack?
What Is a Reentrancy Attack in Smart Contract Security?