The error allowed liquidators to repay roughly $1 of debt to seize cbETH collateral, leaving Moonwell with nearly $1.8 million in bad debt.
DeFi lending protocol Moonwell lost $1.78 million after AI code from Claude Opus 4.6 led to an oracle configuration error.
This scheme has consistently delivered the best returns in its Index Funds - Fixed Income category across 7Y & 10Y.