Moonwell Attacker Manipulates MAMO Price to Drain $8.7 Million

DeFi lender Moonwell has suffered an estimated $8.7 million loss after an attacker manipulated the price of MAMO collateral, a relatively illiquid token associated with the Mamo yield platform.

The attacker artificially pushed the market price of MAMO higher, allowing significantly more valuable assets to be borrowed against it.

Moonwell responded by lowering borrow caps for all Core Markets on Base to 1 wei, effectively preventing new loans while the incident is investigated.

The attack highlights the risks associated with oracle and collateral pricing in DeFi lending protocols.