Fnalysis.
Robbery With No Master Key
An attacker walked off with $8.7 million from a lending protocol without hacking a single line of code, just by inflating the price of a made-up token
On August 27, 2026, an attacker drained $8.7 million from the Moonwell lending protocol on Base without exploiting any coding flaw. They bought up large amounts of a small, illiquid token called MAMO and executed trades that pushed its price from $0.01 to $0.43. Using that inflated price as collateral, they borrowed real, liquid assets that actually had value (cbBTC, USDC, wstETH and ETH), and walked away with them.
Security firm Blockaid caught the activity and Moonwell froze new borrowing within hours, slashing limits on all its Base markets to practically zero while it investigated. No smart contract failed: the protocol did exactly what it was programmed to do, just with a completely fake collateral price.
Source: Crypto.news →Didn't hack the bank, just lied to it about what the couch cushions were worth.