Venus Protocol Exploit: How a $THE Flash Loan Attack Drained $3.7M in Minutes
A sophisticated flash loan attack has drained $3.7 million from Venus Protocol, exposing critical vulnerabilities in DeFi price oracles. The attacker manipulated $THE token prices to exploit the lending platform, executing the multi-million dollar heist in a single transaction before markets could react, sending shockwaves through the decentralized finance community.
Source: X (formerly Twitter)
How the Hacker Manipulated THE Price Today?
The drama began when an attacker address, 0x1a35…6231, received 7,400 ETH from Tornado Cash. To start the exploit, they used this ETH as collateral on Aave to borrow nearly $10 million in stablecoins. They then moved these funds across multiple wallets to buy up THE tokens, causing a massive price surge today.
By pumping the price from $0.26 to $0.56 on various exchanges, the hacker made $THE look far more valuable than it actually was. While the price was high, they deposited 36.1 million $THE into Venus Protocol. Because the system believed the inflated value, it allowed them to borrow real wealth, including 20 BTC, 1.5 million CAKE, and 200 BNB.
Source: X (formerly Twitter)
The Price Crash and Resulting Bad Debt
Once the loans were secured, the attacker dumped their THE tokens back onto the market. This led to a violent $THE price crash, with the token value dropping over 20% to $0.2183 within 24 hours. As the price collapsed, the collateral on Venus became worthless, leading to $2.18 million in bad debt.
The $THE price prediction for now looks shaky as trading volume exploded by 7,044%, hitting $331.3 million as per the CoinMarketCap. This massive selling pressure confirms that the drop was not a market fluke but a coordinated exit. While the protocol tried to liquidate the tens of millions of Thena tokens used as collateral, the market could not absorb the sell-off fast enough.
Technical Forecast
Looking at the chart, the $THE price prediction shows a token under extreme stress. In a bearish case, the massive red candle and high selling volume suggest THE could slip below the $0.200 psychological floor, testing support at $0.180. The MACD is also showing negative momentum, indicating the downward trend might continue.
Souce: CoinMarketCap
However, a bullish case exists if the selling volume cools down. If THE holds the $0.218 level and RSI stabilizes above the oversold zone, we could see a relief rally back toward $0.250. This Venus protocol news highlights how the recovery depends on the market's ability to absorb this huge supply of liquidated tokens.
The Aftermath of the Venus Protocol News
Looking at this on-chain exploit news, it is clear the hacker played both sides. They likely profited from long positions during the pump and short positions during the dump on central exchanges. Currently, the THE token is underperforming a rising market. If it cannot hold the $0.200 support level, it might drop further to $0.180. This Venus protocol on BSC exploit serves as a stark reminder of the risks involved in on chain exploits.
Conclusion
The market is currently reeling from this calculated attack. While the protocol faces a $2.18 million shortfall, the focus now shifts to whether the THE token can stabilize. Investors should watch the $0.200 support level closely. The path to recovery depends entirely on whether the market can absorb this massive sell-side pressure and move past the Venus protocol on BSC exploit.
