Vesu Oracle Malfunction Wipes $3M in Collateral
A recent oracle malfunction on the Starknet-based lending platform Vesu led to the improper liquidation of 47 user positions, affecting around $3 million in collateral assets. The incident occurred on September 4, 2026, within a two-minute window from 04:08 to 04:10 UTC.
The protocol relies on Pragma's external oracle service for accurate price information. When Pragma's feed transmitted erroneous pricing data, Vesu's automated liquidation mechanism identified the positions as undercollateralized and eligible for liquidation. Automated bots executed the liquidations, seizing approximately $3 million worth of collateral before the oracle data self-corrected.
Vesu emphasized that its underlying smart contract infrastructure was functioning exactly as programmed with no exploitable weaknesses. The team maintains that the September 4 event stemmed from corrupted input data rather than flawed contract logic.