Balance Stablecoin Crashes 99% After $1M Bitcoin Vault Exploit

The Balance stablecoin suffered a near-total collapse after an attacker exploited a critical vulnerability in its lending system. The exploit involved feeding the protocol a manipulated, artificially low bitcoin price, which tricked the system into treating healthy vaults as eligible for liquidation. The attacker then liquidated those vaults and captured the resulting profit, all within a single transaction. The attack drained approximately $1 million worth of bitcoin from the protocol's vaults. The incident caused the stablecoin's value to plummet by roughly 99%.