Oracle Error Leaves DeFi Lender Moonwell With $1.8 Million in Bad Debt

A critical oracle pricing glitch has left decentralized lending platform Moonwell grappling with nearly $1.8 million in bad debt. A misconfigured oracle briefly valued Coinbase Wrapped ETH (cbETH) at just $1 Sunday morning, triggering a sudden cascade of liquidations, in a sobering reminder of the fragility lurking in DeFi infrastructure. Key Takeaways Oracle Failure: A configuration error in Chainlink OEV wrapper contracts caused the system to price $2,200 cbETH at a 99.9% discount. Bad Debt Event: Li ...