Moonwell loses $1.78M after AI-generated code error

DeFi protocol Moonwell suffered about $1.78M in losses after a pricing formula bug was introduced in code co-authored by Claude Opus 4.6.

The issue was in the calculation of cbETH price. Instead of reflecting roughly $2,200, the oracle briefly showed a price just above $1.

Arbitrage bots reacted immediately:

➡️ Repaid large amounts of debt for almost nothing

➡️ Accumulated cbETH at distorted prices

By the time the team detected the misconfiguration, losses had reached approximately $1.78M.

AI can write code fast.

Markets exploit bugs faster.