Crypto
Home›Crypto›Market Structure›Bonzo Lend on Hedera loses about $9M after SAUCE oracl…
Bonzo Lend on Hedera loses about $9M after SAUCE oracle exploit
An attacker inflated SAUCE collateral value by roughly 12 orders of magnitude, enabling loans of 6.63 million USDC and 34.5 million wrapped HBAR, Bonzo said.
Hedera-based lending protocol Bonzo Lend lost about $9 million after an attacker exploited a flaw in an on-chain oracle verifier used to value SAUCE collateral, according to a preliminary incident report cited by Cointelegraph.
Bonzo said the attacker deposited 250 SAUCE, which it described as worth only a few dollars, then submitted a price update that inflated the token’s value by roughly 12 orders of magnitude. After that manipulated price went through, the wallet borrowed 6.63 million USDC and 34.5 million wrapped HBAR from the lending pool.
Bonzo attributed the incident to a weakness in Supra’s on-chain oracle verifier, which it said accepted a manipulated SAUCE price even though the signature was effectively zeroed. The protocol said Supra acknowledged the issue and deployed a fix, and it stressed the event was not a vulnerability in Bonzo Lend’s contracts or Hedera’s core network.
Cointelegraph noted the broader DeFi security context, citing 2026 as a year with a record number of exploits by incident count in the second quarter and highlighting oracle failures as a way low-value collateral can be turned into a liquidity-draining tool for lending platforms. The report also pointed to a broader decline in DeFi total value locked and cited additional 2026 hack totals from CryptoRank.