Bonzo Lend Suffers $9M Loss in Hedera Oracle Exploit

What happened: Bonzo Lend, the largest DeFi lender on Hedera, lost approximately $9.05 million after an attacker exploited a flaw in Supra’s onchain oracle verifier. The attacker deposited a small amount of SAUCE tokens, manipulated the price feed to inflate their value by 12 orders of magnitude, and borrowed millions in USDC and wrapped HBAR. The exploit caused Bonzo’s total value locked (TVL) to fall by 77% and Hedera’s network TVL to drop by 40% within 24 hours.

Why it matters: The incident highlights ongoing vulnerabilities in DeFi infrastructure, particularly in oracle design and verification. Supra has since patched the flaw, but the attack underscores the systemic risk posed by oracle failures. The rapid loss of TVL also demonstrates the fragility of emerging DeFi ecosystems on alternative layer-1 networks.

Source: Cointelegraph