[Moonwell Suffers $1.78 Million Bad Debt Due to Oracle Misconfiguration] BlockBeats News, February 18 – The DeFi lending protocol Moonwell suffered approximately $1.78 million in bad debt due to an oracle misconfiguration. After enabling Chainlink's OEV wrapper contract through governance proposal MIP-X43 on February 15, a critical error occurred in the price oracle configuration for cbETH, which at one point was valued at only $1. On-chain trading bots and liquidators acted quickly, seizing cbETH collateral worth thousands of dollars by repaying debts of only about $1. This misconfiguration resulted in the liquidation of a total of 1,096.317 cbETH, wiping out most or all of the collateral for many borrowers and leaving the protocol with significant bad debt. Upon discovering the issue, the Moonwell team immediately reduced the borrowing cap and supply cap for cbETH to 0.01 to limit further losses. However, a spokesperson declined to comment further on the source of the error or details of the vulnerability.