Oracle misconfiguration on Morpho's PT-reUSD market triggers $37 million in liquidations, attacker nets about $3 million

A misconfigured oracle on Morpho's PT-reUSD market enabled an attacker to purchase millions of YT tokens and liquidate roughly $37 million worth of loops. The exploiting wallet was reportedly freshly funded and profited approximately $3 million, with funds being swapped into DAI at the time of the report. According to a cited analysis, the prior expiry market used a linear discount oracle, while the new market combined a linear discount oracle with a TWAP component, which was the part targeted in the exploit.

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• Liquidation
• Morpho