Two decentralized finance protocols lost over $84 million in four days following price manipulation attacks using illiquid tokens as collateral. Tectonic on Cronos was the hardest hit with roughly $75 million affected, while Moonwell on Base was left with approximately $9.1 million in residual debt after a similar attack. The Tectonic attacker exploited the TONIC token by pushing its price sharply higher within minutes, automatically inflating collateral value and borrowing capacity to roughly $375 million. Cronos halted block production to contain the incident, though approximately $6 million had already been bridged to Ethereum as 2,600 ETH. These attacks echo the Mango Markets precedent from October 2022, which led to CFTC and SEC enforcement actions for market manipulation.
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