With the recent release of the FOMO3D exploit in its smart contract, how does the exploit work?
I haven't seen the actual code, so I'm not 100% sure, but I'm pretty sure the smart contract takes advantage of a certain game theoretic idea called a "War of Attrition." https://en.wikipedia.org/wiki/War_of_attrition_(game).
It's not an exploit. There is nothing wrong with the Ethereum blockchain, nothing wrong with Solidity, nothing wrong with the smart contract. Nothing.
Everything is working exactly the way it should be from a technical perspective including the smart contract itself. In fact, it's working too well. It's the human beings that are being exploited.