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CryptoMedium•18 February 2026•

1 min read

Moonwell Oracle Glitch Triggers Multi-Million Dollar ETH Collateral Liquidations

A polygonal whale swims above scattered cryptocurrency coins, including Bitcoin, Ethereum, and Ripple, against an orange background with downward charts and "-70%" text. A large "SIREN" Bitcoin coin i

The decentralized lending platform Moonwell experienced a severe technical failure due to a misconfigured Chainlink price oracle. This error caused the Coinbase Wrapped ETH (cbETH) token to be valued at just $1.12, far below its actual market price of approximately $2,200. Automated bots quickly exploited the pricing discrepancy to trigger massive liquidations and seize millions of dollars in ETH collateral. The incident underscores the critical risks associated with oracle dependencies and smart contract configurations within the DeFi ecosystem. Market analysts expect the exploit to weigh heavily on user trust and the valuation of Moonwell’s native token, WELL. This event serves as a stark reminder of the ongoing security challenges facing decentralized finance protocols.