LOOPSCALE

Sixteen days. That's all it took for Loopscale to join crypto's hall of shame.

Fresh off their launch party, the Solana lending protocol watched helplessly as an attacker drained $5.8 million through their gaping oracle vulnerability on April 26.

One stale price feed was all it took - the digital equivalent of leaving your vault combination taped to the front door. With an audit report warning about oracle validation issues, Loopscale's team somehow found time to market but apparently not time to patch.

Their attacker didn't need a PhD in blockchain vulnerabilities - just a basic playbook: mess with collateral prices, grab under-collateralized loans, empty the vaults, bridge the loot, and vanish into crypto's shadowy corners.

Now Loopscale joins crypto's endless conga line of hacked protocols - sliding into their attacker's DMs with bounty offers while tweeting reassurances like a pilot smiling through engine failure.

When will protocols learn that flashy launches mean nothing if your security is held together with digital duct tape?

Stale prices and undercollateralized loans - a match made in DeFi hell.

Loopscale slammed the brakes on their markets and announced the exploit - but by then, the vaults were already bleeding out.

Mary, Loopscale's co-founder chimed in, "an attacker took out a series of undercollateralized loans on the protocol, exploiting the Loopscale USDC and SOL Vaults for ~$5.8M."

The exploit's surgical precision would be impressive if it weren't so damn predictable.

While Loopscale scrambled to contain the situation, Max N. had already spotted the smoking gun - the attacker simply deployed a malicious price feed and called Loopscale's own create_loan function, elegantly sidestepping security measures with the digital equivalent of a counterfeit ID.

How many times must this lesson be learned?

Price oracle manipulation has been one of DeFi’s oldest tricks in the book - and somehow, protocols still keep leaving the back door wide open.

The attack stripped roughly 12% of Loopscale's total value.