Submitted by hansfriese, also found by bin2chen, 0xdeadbeef0x, Aymen0909, datapunk, Allarious, RaymondFam, adriro, peritoflores, wagmi, Jeiwan, SmartSek, betweenETHlines, immeas, Franfran, Nyx, Ch_301, 0xdeadbeef0x, HollaDieWaldfee, RaymondFam, cccz, 0Kage, and kaliberpoziomka8552
This issue is related to state transition of Minipools.
According to the implementation, the possible states and transitions are as below.

The Rialto may call recreateMinipool when the minipool is in states of Withdrawable, Finished, Error, Canceled.
The problem is that these four states are not the same in the sense of holding the node operators AVAX.
If the state flow has followed Prelaunch->Launched->Staking->Error, all the AVAX are still in the vault.
If the state flow has followed Prelaunch->Launched->Staking->Error->Finished (last transition by withdrawMinipoolFunds), all the AVAX are sent back to the node operator.
So if the Rialto calls recreateMinipool for the second case, there are no AVAX deposited from the node operator at that point but there can be AVAX from other mini pools in the state of Prelaunch.
Because there are AVAX in the vault (and these are not managed per staker base), recreatePool results in a new mini pool in Prelaunch state and it is further possible to go through the normal flow Prelaunch->Launched->Staking->Withdrawable->Finished.
And the other minipool that was waiting for launch will not be able to launch because the vault is lack of AVAX.
Below is a test case written to show an example.
Manual Review, Foundry
Make sure to keep the node operators deposit status the same for all states that can lead to the same state.
For example, for all states that can transition to Prelaunch, make sure to send the AVAX back to the user and get them back on the call recreateMiniPool().
emersoncloud (GoGoPool) confirmed
0xju1ie (GoGoPool) commented:
Alex the Entreprenerd (judge) decreased severity to Medium and commented:
Franfran (warden) commented:
emersoncloud (GoGoPool) mitigated:
Status: Mitigation confirmed by RaymondFam and hansfriese.
