Moonwell Hit by $8.7 Million Price Manipulation Attack on Base

Moonwell suffered an $8.7 million loss due to price manipulation on Base, after an attacker inflated the value of MAMO and borrowed cbBTC against it.

The protocol had no option but to shut down, and in response set borrow caps for every core market on Base to 1 wei, limiting new borrowing across its deployment.

MAMO's thin liquidity made its price easy to move, allowing the attacker to manipulate its value and use it as collateral.

Blockaid observed 50.6 cbBTC worth over $4 million being drained from Moonwell's mCBTC market, consolidated into 8,728,318 DAI at an Ethereum address that was empty until Aug. 21.