Loopscale restores partial lending functionality, confirms attack involved two paths and user deposits will not be affected.

BlockBeats news, November 6 - According to official sources, Solana-based lending protocol Loopscale has announced that the platform has restored its priority loan function, and all loans are now open for additional collateral operations; except for loans funded by the USDC Genesis Vault, all other loans can be repaid, and borrowers can retrieve their collateral after full repayment. However, the collateral withdrawal function for loans related to the USDC Genesis Vault remains temporarily closed, and vault withdrawals and other protocol functions also continue to be restricted. The team is working with partners to advance security recovery efforts.

Loopscale stated that it has identified and contained the two attack paths exploited by the attacker in this incident. The attacker first exploited a misconfiguration in asset pricing parameters, causing the collateral deposited in the SOL Genesis Vault to be incorrectly valued as another asset, thereby obtaining an undercollateralized loan of approximately $412,000; subsequently, the attacker used atomic transaction combinations to sell a loan with an abnormally high interest rate to the USDC Genesis Vault, artificially inflating its net asset value (NAV), and then extracted approximately $521,000 in redemption funds. This operation was intercepted by the system within 30 seconds after the transaction was generated. Loopscale emphasized that user deposits will not suffer losses as a result.