Update on the Kelp fallout (explored with Santiment MCP + Claude):
☝️ Aave published its formal incident report — bad debt could be $124M (if losses socialize across all rsETH) or $230M (if isolated to L2s).
☝️ $AAVE’s reaction? No dramatic move — ~$92, holding a tight range.
The market has either priced in the full range already, or is betting Scenario 1 + Aave’s $181M treasury covers it.
Meanwhile: the attacker reportedly moved ~$175M to fresh addresses despite Arbitrum’s $71M freeze, with THORChain laundering attempts flagged. The chase and the case aren’t over just yet.
(Full thread tracking the cascade: