DeFi Protocol Hit by Collateral Exploit, Leaving $403K in Bad Debt

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A malicious actor manipulated the price of a tokenized Google stock token on a DeFi lending platform, inflating its value to approximately 78 times its actual market price. The attacker then used the artificially overvalued token as collateral to borrow funds against it. The exploit resulted in around $403,000 in bad debt left on the protocol. The incident highlights ongoing vulnerabilities in DeFi platforms that rely on tokenized real-world assets as collateral.

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