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Moonwell suffered approximately $1.78 million in losses due to a misconfiguration of a price oracle.

2026.02.18 14:06:11

Feb 18: DeFi lending protocol Moonwell incurred a roughly $1.78 million default due to an oracle misconfiguration. On Feb 15, Moonwell activated Chainlink’s OEV aggregator contract for cbETH price oracles via governance proposal MIP-X43. A critical configuration error temporarily valued cbETH at just $1. On-chain bots and liquidators acted swiftly, repaying only $1 of debt to seize cbETH collateral worth thousands of dollars. The mistake triggered the liquidation of 1,096.317 cbETH, wiping out most or all collateral for many borrowers and leaving the protocol with heavy losses. The Moonwell team immediately reduced cbETH’s borrowing and supply caps to 0.01 to contain further damage. A spokesperson declined to disclose details about the error’s source or underlying vulnerability.
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