In the past 24 hours, approximately $27 million worth of positions on the Aave platform have been liquidated due to a configuration issue with the protocol's CAPO risk oracle. The system temporarily underestimated the value of the wstETH token by about 2.85%, causing some loans to fall below the safety threshold. Risk management firm Chaos Labs stated that the underlying oracle reported the correct price, but outdated smart contract parameters led to the price discrepancy. Although no bad debt was generated, liquidators earned approximately 499 ETH in rewards and profits from this temporary price mismatch.

AAVE-2.81%
ETH-2.03%
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