Andre Cronje: L0/rsETH incident leads to theft of approximately $200 million rsETH

Flying Tulip founder Andre Cronje stated that the L0/rsETH incident may have resulted in approximately $200 million in rsETH being stolen due to private key leaks or configuration errors. These rsETH were subsequently deposited into Aave to lend ETH due to insufficient liquidity of rsETH. Cronje pointed out that the position is technically backed by collateral, but Aave cannot subsidize losses for users, which may trigger a run on the bank risk.