Moonwell lost approximately $8.7 million after an attacker manipulated the price of the MAMO token on Base and used the inflated collateral position to borrow real assets, prompting the lending protocol to shut itself down by setting borrow caps to 1 wei across all core markets. Security firms CertiK and PeckShield both confirmed the $8.7 million loss, including 50.6 cbBTC worth over $4 million drained from the mCBTC market. The proceeds were consolidated into 8,728,318 DAI at an Ethereum address funded through Tornado Cash and cross-chain bridges. This incident marks Moonwell’s second collateral-pricing failure this year, following a $1.78 million loss from a Chainlink oracle misconfiguration in February.
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