AAVE - REKT
Friday, March 13, 2026
The shield became the weapon.
$27.78 million (10,938 wstETH) in healthy positions liquidated - not by a hacker, not by a market crash, by Aave's own anti-manipulation system, misfiring on the people it was built to protect.
Parameter Update:
0xfbafeaa8c58dd6d79f88cdf5604bd25760964bc8fc0e834fe381bb1d96d3db95
AgentHub executed it one block later.
Execution Transaction:
0x32c64151469cf2202cbc9581139c6de7b34dae2012eba9daf49311265dfe5a1e
The CAPO oracle, designed specifically to prevent artificial price manipulation, quietly capped wstETH at 2.85% below market rate, and Aave's liquidation engine did the rest.
34 accounts,10,938 wstETH, worth $27.78 million. Gone before most users could refresh their dashboards.
Note: wstETH is not ETH. It's Lido's wrapped staked ETH, a yield-bearing token that trades at a premium to ETH, accruing staking rewards over time. The gap matters when you're counting the damage.
No exploit code. No compromised keys. No bridge vulnerability. The most sophisticated oracle protection system in DeFi just disagreed with reality, and reality lost.
Aave's Risk Oracle had streamed over 1,200 payloads across 3,000+ parameters without a single incident. Then this one broke $27.78 million worth of positions in a single block.
When your best defense becomes your biggest liability, what exactly were you defending against?
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We are all rekt.