FlamingoFinance Suffers $346K Loss from DeFi Exploit Using $18M Flash Loan

FlamingoFinance has lost approximately $346,000 in a DeFi exploit that took advantage of an older contract's pricing flaw. According to Blockaid, the attacker used an $18 million USDT flash loan to manipulate share prices and redeem aUSDT at an inflated rate. The security firm identified several wallet addresses linked to the attack.

The affected contracts were part of FlamingoFinance's earlier deployments. Blockaid noted that the attacker interacted with USDP liquidity-provider tokens held by a strategy contract, which allowed them to inflate VaultYUSDT's share price and exploit the pricing flaw.