Moonwell suffered approximately $1.78 million in losses due to a misconfiguration of the oracle.

BlockBeats News, February 18th: DeFi lending protocol Moonwell experienced a $1.78 million default due to a price oracle misconfiguration. Moonwell enabled Chainlink's OEV Aggregator contract through governance proposal MIP-X43 on February 15th, where a severe error in the price oracle configuration for cbETH occurred, momentarily valuing it at only $1. On-chain bots and liquidators swiftly acted, seizing the cbETH collateral by repaying the $1 debt.

This configuration error led to the liquidation of 1096.317 cbETH, wiping out the majority of collateral for many borrowers and leaving the protocol with significant defaults. Upon discovering the issue, the Moonwell team promptly reduced the cbETH borrowing and supply caps to 0.01 to limit further losses, but the official stance currently refrains from further comments on the source of the error or vulnerability details.