Goodness, I thought it would first drop short and then go long, but it turned out to be the opposite.

According to Odaily Planet Daily, Yearn Finance's yETH product was reportedly attacked today. The attacker exploited a vulnerability that allowed for 'infinite minting' of yETH, quickly draining the entire yETH pool in a single transaction.

According to on-chain data, approximately 1,000 ETH (about 3 million USD) was subsequently transferred to Tornado Cash. The attack appears to have been completed through multiple newly deployed contracts, some of which self-destructed immediately after the transaction concluded.

It remains uncertain how much of the approximately 11 million USD in funds originally in the yETH pool was affected. Yearn officials stated that they are investigating the matter and emphasized that their V2 and V3 Vaults were not impacted. The entire incident is still developing.