Attackers exploited Moonwell’s Base lending market on August 27, inflating the price of the illiquid MAMO token to over-collateralize loans. They drained cbBTC, USDC, wstETH, and ETH, with losses estimated near $8.7 million. Security firm ExVul reports the attacker spent about $7 million buying MAMO, then sold part of it at a loss to justify borrowing roughly $10 million in real assets. This is Moonwell’s third oracle-related failure since late 2025. Blockaid, ExVul, and CertiK issued differing real-time loss estimates as the exploit unfolded, while Moonwell’s WELL token briefly spiked then fell. The team reportedly moved to restrict the affected market, and users await a recovery plan.
This update represents a notable development in the Crypto sector. Organizations and founders tracking this space should evaluate potential strategic and technical implications on their operations.