Flamingo Finance Suffers $346,000 Loss in DeFi Exploit Attack

Flamingo Finance suffered a significant loss of $346,000 due to a DeFi exploit on September 16, 2026. The attack utilized an $18 million USDT flash loan, which was used to manipulate share prices in older Flamincome/VaultYUSDT strategy contracts.

The attacker staked USDP LP tokens to inflate the vault share price, allowing them to redeem liquid aUSDT at a favorable rate.

Blockaid's exploit detection system identified the attack, highlighting the risks and security weaknesses associated with DeFi flash loan exploits.