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Moonwell Hit With $1.78 Million Bad Debt After cbETH Oracle Mispriced Token at About $1

Moonwell says a governance vote will correct the cbETH price feed after the required timelock.

Overview

  • The mispricing followed passage of governance proposal MIP-X43, which enabled Chainlink OEV wrappers on Base and Optimism.
  • The oracle used only the cbETH/ETH rate instead of multiplying by the ETH/USD price, posting a cbETH value near $1.12.
  • Liquidators repaid roughly $1 per position to seize 1,096.317 cbETH, and some users over-borrowed cbETH at the distorted price, producing additional bad debt.
  • Risk manager Anthias Labs cut the cbETH borrow and supply caps to 0.01 to limit further exposure.
  • Social posts and reports indicate the faulty pricing logic was reportedly co-authored by the AI model Claude Opus 4.6, a claim that remains unconfirmed.