
Another significant exploit happened on November 4, 2025, on the decentralized lending protocol Moonwell on both Base and Optimism networks. BlockSec security firm noted anomalies in smart contracts of Moonwell and discovered that attackers took advantage of a pricing mistake in the ETH/ETH oracle feed. The attack resulted in over one million dollars in losses, one of the biggest decentralized finance (DEFI) security breaches over the past few months. The way Attackers took advantage of the Price Feed. This manipulation enabled the attackers to do arbitrage and extract money out of the lending pools. The price difference allowed them to borrow under artificially overstated collateral values. On-chain observation by BlockSec indicated that the transactions placed the abnormal price pattern and among the high liquidation triggers. Moonwell Economic and Technological Effect Analysts indicate this event as a drawback to oracle configuration, which includes archaic heartbeat intervals and broad deviation thresholds. This is not the first experience of vulnerabilities that Moonwell has had. Another exploit that took place in December 2024 resulted in over 320,000 in losses due to a flash loan attack. These frequent occurrences of repeating incidences highlight the ongoing problems of smart contract and oracle reliability. More than one point two billion were stolen to DeFi exploits in 2024 alone, and oracle manipulations were among the best attack tools. Prices distortions associated with MEV bots are still a significant threat to protocols that rely on off-chain data. This exploit has raised concerns that this may ignite a series of questions on DeFi oracle systems once again, as warned by security experts. Institutions like BlockSec, and PeckShield would likely release postmortems in the analysis of the technical root cause. Moonwell exploit shows how weak the DeFi ecosystems are in spite of increasing adoption. One wrongly set price oracle created a domino effect that cost in minutes more than 1 million dollars. Although the fast response of BlockSec prevented the further loss, it was silent. Investors are now anxious due to Moonwell. Such violation highlights the necessity of establishing multi-source oracle verification and quicker updates of heartbeat in order to avoid such attacks.
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