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DeFi lender Moonwell loses $8.7M after attacker manipulates MAMO token price on Base network

Market News
27 Aug 2026
Coinpaper
View Source
Bearish
pluang ai news

Moonwell, a DeFi lending platform, suffered an $8.7 million loss after an attacker manipulated the price of the MAMO token used as collateral on its Base markets. The attacker artificially inflated MAMO's price, allowing them to borrow high-value assets like cbBTC and USDC against overvalued collateral. In response, Moonwell restricted new borrowing by lowering borrow caps to 1 wei while investigating the incident. This exploit highlights risks in price oracles and collateral valuation in DeFi lending, especially with illiquid tokens, and comes amid a surge in costly DeFi security breaches.

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