Moonwell Exploit: Pricing Glitch Leads to Millions in ETH Loss, WELL Token Plummets

A critical pricing oracle malfunction on the Moonwell DeFi lending protocol has resulted in a multi-million dollar exploit, allowing automated bots to drain significant Ethereum (ETH) collateral. The incident, triggered by a price feed error that valued the protocol's native WELL token at just $1.12 instead of its market price, enabled attackers to borrow massive amounts of ETH against nearly worthless WELL deposits. This exploit caused the WELL token price to crash by over 60% as the community and security teams scramble to assess the damage and contain the fallout. The event highlights persistent vulnerabilities in decentralized finance (DeFi) smart contracts and price oracle dependencies, raising concerns about risk management and security audits in the sector.