Post by Augustine Chiagozie (@pabloexchange)

🔐 Balance Stablecoin Collapses 99% After $1M Oracle Attack

The Balance stablecoin has collapsed by 99% after an attacker exploited its lending system in a single transaction, draining approximately $1 million from its bitcoin vaults.

The exploit involved feeding the protocol a fake, abnormally low bitcoin price. This triggered the liquidation of vaults that should have been safe under normal conditions, allowing the attacker to pocket the difference. The manipulation is a classic oracle attack — where a bad actor corrupts the price feed a DeFi protocol relies on to assess collateral health.

Oracle manipulation remains one of the most persistent attack vectors in DeFi, with protocols that depend on a single or easily manipulated price source remaining highly vulnerable.

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