Lending protocol Bonzo loses 77% of value locked as $9 million oracle exploit rattles Hedera
The Bonzo lending protocol on the Hedera network suffered a $9 million exploit due to a manipulated price oracle. The incident caused a 40% drop in Hedera's total value locked as the attacker drained USDC and HBAR assets.
Why it matters
This highlights the persistent vulnerability of decentralized finance (DeFi) protocols to oracle manipulation, posing significant risks to network liquidity and investor confidence.
The attacker deposited 250 SAUCE tokens with little value, before submitting a manipulated price update that inflated the token’s HBAR-denominated value, according to a preliminary incident report from Bonzo.
The report provides a factual account of the exploit based on incident reports and market data without editorializing.
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