Some Chad with more money than sense just spent $320K on Pendle and triggered $36.4M in liquidations on Morpho. Wallet 0x854e...690d bought YT-reUSD like a madman, crashed PT-reUSD by 3%, and wiped out 19–20 over-leveraged borrowers. No bad debt, says the protocol, but your portfolio doesn't give a shit about protocol solvency, does it?
▪️ Wallet 0x854e made 11 rapid trades in 9 minutes, buying YT-reUSD for $320K, spiking implied yield from 11% to 20%+ — because why not?
▪️ That 3% drop in PT-reUSD was enough to liquidate positions on Morpho with LTV near 91.5% – zero buffer, 33 events. Zero. Fucking. Buffer.
▪️ 38M PT-reUSD seized as collateral, $35.19M USDC and $960K USDT debt repaid. No bad debt – just lucky. For now.
▪️ Oracle used lower of 15-min market average or 6% fixed discount curve – easy to game in a thin market. Surprise, surprise.
▪️ Each $1 the trader spent triggered ~$114 in liquidations – that's a 114x leverage on manipulation. Math is fun when you're not on the losing end.
▪️ Pendle vault launched Aug 4, attracted $15M deposits, maturity Dec 10, 2026 – context matters, but not to the guy who just got rekt.
📊 Trade Cost:
$320K📊 Liquidations:
$36.4M📊 Events:
33📊 Borrowers Hit:
19-20If you're holding PT-reUSD or borrowing on Morpho against Pendle tokens, you just got a free lesson in oracle fragility – and it cost someone else $36M. The thin liquidity in these yield-split markets is a playground for manipulators. That vault with $15M and a December 2026 maturity is a sitting duck for the next guy with a bigger bag. Expect more teams to review oracle configs – but until then, keep your LTV below 50% if you're playing with derivative collateral. Or just don't ape into shit that can be 3% nudged by a $320K trade. Your call, but I've seen this movie before.
🔮 One wallet, $320K, 9 minutes, $36M. The math says someone with a bigger bag is already planning the next round. Bless their hearts.
@exverse_chat
