Moonwell Looks into Misreporting of wrsETH Prices

Incident Clarification: Moonwell, a DeFi lending protocol, denied reports of a $1 million exploit, attributing the issue to a misreported oracle price for wrapped restaked ETH (wrsETH) rather than an active hack.

Response Measures: In response to the mispricing, Moonwell has reduced supply and borrow caps to near zero and is investigating the situation with security researchers, emphasizing that no funds were lost, although some in the community dispute this claim.

Market Context: The incident occurred shortly after a significant $116 million exploit on Balancer, raising concerns about the reliability of oracle feeds and automated market functions in the DeFi space.

Ongoing Risks: The situation underscores the fragility of automated systems in DeFi, where a single data error can lead to substantial financial repercussions, prompting users to remain cautious until a full audit is released.