🚨 DEFI SHOCK: AAVE UNDER PRESSURE 🚨
$AAVE crashes -19% as a massive $292M rsETH exploit rocks the market.
Here’s the breakdown 👇
An attacker drained 116,500 rsETH via a bridge exploit… then used it as collateral on Aave to borrow $236M in WETH.
Now the problem 👇
That rsETH is unbacked → meaning the loans are unliquidatable.
💥 Result:
• ~$280M potential bad debt on Aave
• ETH pool hit 100% utilization
• Liquidity crisis triggered
Panic has already started…
Over $5.4B ETH withdrawn from the protocol 😳
Even Justin Sun pulled out 65K+ ETH ($154M)
⚠️ What this means:
No liquidity = users can’t easily withdraw ETH
This is now:
🔥 The BIGGEST DeFi exploit of 2026
🛡️ First real test of Aave’s safety module
Market is on edge…
Will Aave survive this stress test or is this just the beginning? 👀
#KelpDAOFacesAttack #AltcoinRecoverySignals? #ARKInvestReducedPositionsinCircleandBullish #RheaFinanceReleasesAttackInvestigation