What Is an Integer Overflow and How Does It Impact Token Balances?

An integer overflow occurs when an arithmetic operation results in a number that is larger than the maximum value the variable's data type can store. For example, if a 256-bit unsigned integer reaches its maximum, adding one more causes it to wrap around to zero.

This vulnerability can be exploited to manipulate token balances, allowing an attacker to mint an arbitrarily large number of tokens or bypass transfer limits by causing the balance check to evaluate to a false positive.