Aave Oracle Glitch Causes ~$26M Liquidations



A pricing oracle issue on Aave triggered around $26M in liquidations involving Wrapped Staked Ether (wstETH) positions across about 34 accounts.

The problem came from a temporary configuration error in Aave’s CAPO risk oracle, which briefly showed an incorrect exchange rate. This made some positions appear undercollateralized and automatically triggered liquidations.

The team confirmed this was not a hack, and the protocol itself did not suffer any bad debt. According to Chaos Labs, affected users are expected to be compensated after the incident.

This event highlights how even small oracle errors in DeFi can lead to large liquidations.
AAVE2,99%
DEFI-9,49%
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