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Bonzo Lend loses 77% of TVL after $9M oracle exploit on Hedera
The incident triggered a nearly 40% Hedera TVL drop in 24 hours and left the attacker able to borrow USDC and wrapped HBAR beyond collateral value.
Bonzo Lend, a decentralized lending protocol on the Hedera network, lost about $9.05 million after an attacker exploited a verification flaw in a third-party Supra oracle contract, CoinDesk reported. The exploit involved depositing low-value SAUCE tokens and submitting a manipulated price update to inflate the tokens’ HBAR-denominated value, allowing borrowing far above collateral.
According to a preliminary incident report cited by CoinDesk, the attacker borrowed 6.63 million USDC and 34.52 million wrapped HBAR during the period when the abnormal price was active. At the report’s reference HBAR price of $0.06998, those withdrawals were estimated at roughly $9.05 million, and a second wallet borrowed about $1 million of additional assets.
CoinDesk said Bonzo estimated total losses at approximately $9.05 million, while excluding assets later associated with a wallet that contacted the protocol via Discord and described itself as a white-hat responder intent on returning funds. Bonzo placed total principal borrowed during the incident at roughly $10.06 million before recovery.
Hedera’s total value locked fell by nearly 40% over 24 hours following the exploit, while Bonzo’s TVL plunged 77%, CoinDesk reported. Hedera TVL was shown at $25.7 million based on DeFLlama data after the drop.