Moonwell DeFi oracle misconfiguration on Base causes $1.78M bad debt

Moonwell DeFi reported an oracle misconfiguration in its cbETH market on Base that priced cbETH at about $1.12 instead of roughly $2,200, allowing bots to liquidate collateral at artificially low values and generate approximately $1.78 million in bad debt limited to that market.

The team said the issue was detected within minutes on Feb. 15, 2026, and risk controls were immediately tightened by reducing supply and borrow caps to 0.01 to prevent further exposure. Other markets and networks, including Optimism, were not affected.

A governance proposal to fix the oracle configuration is now in progress and subject to a five-day voting and timelock period. Community responses have raised trust and compensation questions, while the team plans to publish a full postmortem with detailed loss spreadsheets.