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Morpho Records $36M Liquidations As Oracle Manipulation Renews DeFi Risk Debate

Morpho recorded approximately $36.1 million in liquidations early Tuesday between 04:37 and 04:51 UTC on August 26, 2026, after a thinly traded Pendle yield market was manipulated to trigger cascading position closures. The attack targeted a Pendle reUSD principal token pool maturing December 10,
MORPHO-4.33%
PENDLE-1.93%
USDC+0.01%
RE-9.24%
AAVE-1.22%
GateCryptoDesk·08-26 08:34
Morpho Records $36M Liquidations As Oracle Manipulation Renews DeFi Risk Debate

$36M Morpho Liquidation Triggered by Pendle Market Manipulation in 14 Minutes

On August 26, a thinly traded Pendle yield market was manipulated early Tuesday, triggering $36.1 million in liquidations on Morpho between 04:37 and 04:51 UTC. A single wallet purchased reUSD yield tokens to push implied yields to 20%, flooding the principal token pool and depressing its price.
MORPHO-4.33%
PENDLE-1.93%
AAVE-1.22%
LINK-0.18%
GateNews·08-26 08:32
$36M Morpho Liquidation Triggered by Pendle Market Manipulation in 14 Minutes