Attacker Drains $8.7 Million from Moonwell Using Thin-Liquidity Collateral

Moonwell, a lending protocol on Coinbase's Base network, lost about $8.7 million due to an attacker manipulating the price of MAMO, a small governance token.

The attacker pushed MAMO from roughly a cent to about $0.43 and used that inflated value to borrow real assets from Moonwell's markets.

No contract break or flash loan magic was needed; the attacker simply made the collateral look rich enough for a few minutes, which was enough for Moonwell to treat the number as usable.

Moonwell's own post-mortem revealed that the MAMO source feed reached $0.43127363 on August 27 and Moonwell accepted a MAMO price of $0.40248571 shortly before the final borrow.