Hedera Value Locked Plummets 40% After $9.05M Exploit Amid Institutional Milestone

Hedera's network-wide total value locked plummeted nearly 40% in the 24 hours following a $9.05 million exploit on July 11, as an attacker manipulated a third-party oracle to borrow far more than their collateral supported.

The attack occurred when an attacker deposited just 250 SAUCE tokens and submitted a manipulated price update to an on-demand oracle contract, inflating the value of SAUCE by roughly 12 orders of magnitude. Eight seconds later, the attacker used that inflated collateral to borrow approximately $9.05 million in USDC and Wrapped HBAR (WHBAR).

The attack was attributed to a flaw in Supra's third-party oracle verification infrastructure, rather than a vulnerability in Hedera's underlying network or Bonzo's own smart contracts.