Overview
- Moonwell announced on Thursday, August 27, 2026 that it set the MAMO borrow cap to 1 wei and tightened supply caps for MAMO and WELL, effectively preventing new borrowing on the affected market.
- Security firms CertiK, PeckShield and Blockaid reported the attacker pushed up MAMO’s market price, deposited the inflated tokens as collateral, and used that collateral to borrow deeper‑liquidity assets.
- On‑chain tracing and CertiK reported about $8.7 million of proceeds consolidated at an attacker address while Crypto Briefing estimated the exploit involved roughly $10 million of borrowed assets and more than $4 million in cbBTC drained.
- Moonwell said it is conducting a thorough review to quantify losses, check whether any funds can be recovered, and define safeguards and conditions for reopening the MAMO market.
- The incident underlines a common DeFi weakness: tokens with shallow order books can be cheaply price‑manipulated, which can then feed oracles and let attackers over‑borrow unless protocols tighten oracle feeds and collateral rules.