Aave wstETH oracle glitch triggered $27M in liquidations; DAO pledges 345 ETH compensation
Aave was hit by a roughly $27 million liquidation cascade after a pricing error temporarily undervalued wrapped staked Ether, or wstETH, across the protocol. A mispricing of only about 2.85% was enough to force liquidations across multiple positions and expose how sensitive leveraged lending markets remain to oracle errors.