The Ethereum decentralized lending protocol Term Finance suffered a loss of 1.6 million USD due to a configuration error with its oracle. Attackers exploited erroneous price data to carry out unauthorized liquidations, exposing vulnerabilities in DeFi protocols regarding oracle security. Term Finance responded quickly, internally recovering about 400,000 USD and negotiating to recover 600,000 USD, but approximately 650,000 USD in losses remain unrecoverable. The company emphasized that this was not due to a hack or contract vulnerability, but rather a technical configuration error, and is currently optimizing its oracle integration process.

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